SENATE JOURNAL

EIGHTIETH LEGISLATURE — REGULAR SESSION


AUSTIN, TEXAS


PROCEEDINGS


SIXTY-EIGHTH DAY

(Saturday, May 26, 2007)

The Senate met at 11:26 a.m. pursuant to adjournment and was called to order by Dean Whitmire.

The roll was called and the following Senators were present:iiAveritt, Brimer, Carona, Deuell, Duncan, Ellis, Eltife, Estes, Fraser, Harris, Hegar, Hinojosa, Jackson, Janek, Lucio, Nelson, Nichols, Ogden, Patrick, Seliger, Shapiro, Shapleigh, Uresti, VanideiPutte, Watson, Wentworth, West, Whitmire, Williams, Zaffirini.

Absent-excused:iiGallegos.

The Presiding Officer announced that a quorum of the Senate was present.

Senator Craig Estes offered the invocation as follows:

Dear Lord, why do the nations conspire and the peoples plot in vain? The kings of the Earth take their stand and the rulers gather together against the Lord and against His anointed one. Let us break their chains, they say, and throw off their fetters. The One enthroned in heaven laughs; the Lord scoffs at them. Then He rebukes them in His anger and terrifies them in His wrath, saying, I have installed my king on Zion, my holy hill. I will proclaim the decree of the Lord:iiHe said to me, You are my son; today I have become your father. Ask of me, and I will make the nations your inheritance, the ends of the Earth your possession. You will rule them with an iron scepter; you will dash them to pieces like pottery. Therefore, you kings, be wise; be warned, you rulers of the Earth. Serve the Lord with fear and rejoice with trembling. Kiss the son, lest He be angry and you be destroyed in your way, for His wrath can flare up in a moment. Blessed are all who take refuge in Him.ii(Psalm 2) Amen.

(President in Chair)

Senator Whitmire moved that the reading of the Journal of the proceedings of yesterday be dispensed with and the Journal be approved as printed.

The motion prevailed without objection.

LEAVE OF ABSENCE

On motion of Senator Wentworth, Senator Gallegos was granted leave of absence for today on account of illness.

MESSAGE FROM THE HOUSE

HOUSE CHAMBER

Austin, Texas

May 26, 2007

The Honorable President of the Senate

Senate Chamber

Austin, Texas

Mr. President:

I am directed by the House to inform the Senate that the House has taken the following action:

THE HOUSE HAS PASSED THE FOLLOWING MEASURES:

HCR 269, In memory of Elizabeth Robertson Boatner of Mount Pleasant.

HCR 270, In memory of Ashantay Renee Gray Bouchon of Paris.

HCR 271, In memory of Dean Vincent Grossnickle.

SCR 80, Commending the Texas State Board of Pharmacy for 100 years of service to the citizens of Texas.

THE HOUSE HAS CONCURRED IN SENATE AMENDMENTS TO THE FOLLOWING MEASURES:

HB 15 (113 Yeas, 30 Nays, 1 Present, not voting)

HB 470 (139 Yeas, 0 Nays, 2 Present, not voting)

HB 556 (140 Yeas, 0 Nays, 2 Present, not voting)

HB 735 (138 Yeas, 0 Nays, 2 Present, not voting)

HB 814 (135 Yeas, 6 Nays, 2 Present, not voting)

HB 860 (132 Yeas, 0 Nays, 3 Present, not voting)

HB 866 (140 Yeas, 0 Nays, 2 Present, not voting)

HB 914 (138 Yeas, 0 Nays, 2 Present, not voting)

HB 946 (139 Yeas, 0 Nays, 2 Present, not voting)

HB 1503 (136 Yeas, 0 Nays, 2 Present, not voting)

HB 1526 (126 Yeas, 7 Nays, 3 Present, not voting)

HB 1751 (112 Yeas, 21 Nays, 1 Present, not voting)

HB 1960 (140 Yeas, 0 Nays, 2 Present, not voting)

HB 2300 (136 Yeas, 1 Nays, 2 Present, not voting)

HB 2532 (141 Yeas, 0 Nays, 2 Present, not voting)

HB 2566 (139 Yeas, 0 Nays, 2 Present, not voting)

HB 2605 (136 Yeas, 0 Nays, 2 Present, not voting)

HB 2884 (137 Yeas, 0 Nays, 3 Present, not voting)

4634 80th Legislature — Regular Session 68th Day


HB 3107 (138 Yeas, 0 Nays, 2 Present, not voting)

HB 3475 (139 Yeas, 0 Nays, 2 Present, not voting)

HB 3554 (133 Yeas, 0 Nays, 2 Present, not voting)

HB 3630 (139 Yeas, 0 Nays, 2 Present, not voting)

HB 3692 (142 Yeas, 0 Nays, 2 Present, not voting)

HB 3699 (135 Yeas, 0 Nays, 2 Present, not voting)

HB 3837 (134 Yeas, 0 Nays, 2 Present, not voting)

HB 4029 (137 Yeas, 0 Nays, 2 Present, not voting)

HB 4032 (143 Yeas, 0 Nays, 1 Present, not voting)

HB 4053 (140 Yeas, 0 Nays, 1 Present, not voting)

HB 4113 (122 Yeas, 8 Nays, 1 Present, not voting)

HJR 19 (142 Yeas, 0 Nays, 1 Present, not voting)

THE HOUSE HAS REFUSED TO CONCUR IN SENATE AMENDMENTS TO THE FOLLOWING MEASURES AND REQUESTS THE APPOINTMENT OF A CONFERENCE COMMITTEE TO ADJUST THE DIFFERENCES BETWEEN THE TWO HOUSES:

HB 3 (non-record vote)

House Conferees:iiPuente - Chair/Guillen/Hilderbran/Morrison/Straus

HB 4 (non-record vote)

House Conferees:iiPuente - Chair/Creighton/Guillen/Laubenberg/McClendon

HB 610 (non-record vote)

House Conferees:iiBrown, Fred - Chair/Brown, Betty/Hancock/Howard, Donna/Isett, Carl

HB 828 (non-record vote)

House Conferees:iiHochberg - Chair/Branch/Eissler/Olivo/Patrick, Diane

HB 1113 (non-record vote)

House Conferees:iiTurner - Chair/Bailey/Bolton/Dutton/Madden

HB 1168 (non-record vote)

House Conferees:iiMenendez - Chair/Davis, John/Kolkhorst/McClendon/Veasey

HB 1565 (non-record vote)

House Conferees:iiPuente - Chair/Corte, Frank/Flores/Guillen/Leibowitz

HB 1919 (non-record vote)

House Conferees:iiSmith, Todd - Chair/Davis, John/Farabee/Hancock/Smithee

HB 2006 (non-record vote)

House Conferees:iiWoolley - Chair/Callegari/Cook, Robby/Corte, Frank/Pena

HB 2237 (non-record vote)

House Conferees:iiEissler - Chair/Hochberg/Krusee/Miles/Patrick, Diane

Saturday, May 26, 2007 SENATE JOURNAL 4635


HB 2644 (non-record vote)

House Conferees:iiRose - Chair/Corte, Frank/Delisi/Hartnett/King, Susan

HB 2667 (non-record vote)

House Conferees:iiLatham - Chair/Chisum/Davis, John/Driver/Paxton

HB 2833 (non-record vote)

House Conferees:iiDriver - Chair/Bonnen/Latham/Taylor/West, George "Buddy"

HB 3154 (non-record vote)

House Conferees:iiLaubenberg - Chair/Coleman/Taylor/Thompson/Zerwas

HB 3200 (non-record vote)

House Conferees:iiMadden - Chair/Haggerty/Hochberg/McReynolds/Zedler

HB 3315 (non-record vote)

House Conferees:iiKeffer, Jim - Chair/Cook, Robby/Davis, Yvonne/McReynolds/Paxton

HB 3382 (non-record vote)

House Conferees:iiNaishtat - Chair/Berman/Howard, Donna/Leibowitz/McCall

HB 3438 (non-record vote)

House Conferees:iiFlores - Chair/Gonzales/Guillen/Pena/Raymond

HB 3560 (non-record vote)

House Conferees:iiSwinford - Chair/Chisum/Gallego/Ritter/Woolley

HB 3609 (non-record vote)

House Conferees:iiTalton - Chair/Davis, John/Geren/Hodge/Pitts

HB 3613 (non-record vote)

House Conferees:iiLatham - Chair/Driver/O'Day/Ortiz, Jr./Vo

HB 3674 (non-record vote)

House Conferees:iiDavis, John - Chair/Gonzales/Hopson/Noriega, Rick/Taylor

HB 3693 (non-record vote)

House Conferees:iiStraus - Chair/Anchia/Crabb/King, Phil/Talton

HB 3826 (non-record vote)

House Conferees:iiMorrison - Chair/Brown, Fred/Howard, Donna/McCall/Patrick, Diane

HB 3838 (non-record vote)

House Conferees:iiGonzalez Toureilles - Chair/Chisum/Escobar/Gonzales/Hardcastle

HB 3851 (non-record vote)

House Conferees:iiMorrison - Chair/Aycock/Brown, Fred/Patrick, Diane/Rose

HB 3873 (non-record vote)

House Conferees:iiMenendez - Chair/Bailey/Chisum/Cook, Byron/Talton

THE HOUSE HAS REFUSED TO CONCUR IN SENATE AMENDMENTS TO THE FOLLOWING MEASURES:

HB 2265 (non-record vote)

HB 3581 (non-record vote)

4636 80th Legislature — Regular Session 68th Day


THE HOUSE HAS GRANTED THE REQUEST OF THE SENATE FOR THE APPOINTMENT OF A CONFERENCE COMMITTEE ON THE FOLLOWING MEASURES:

SB 1604 (non-record vote)

House Conferees:iiBonnen - Chair/Driver/Escobar/King, Tracy/Kuempel

THE HOUSE HAS DISCHARGED ITS CONFEREES AND APPOINTED NEW CONFEREES ON THE FOLLOWING MEASURES:

HB 12 (non-record vote)

House Conferees:iiHilderbran - Chair/Flores/Gattis/Howard, Donna/O'Day

THE HOUSE HAS TAKEN THE FOLLOWING OTHER ACTION:

HB 3314

The House refuses to concur in Senate Amendments and requests the appointment of a conference committee with instructions to adjust the differences between the two houses:

House Conferees:iiKeffer, Jim - Chair/Bonnen/Crownover/Pena/Ritter

HB 3319

The House refuses to concur in Senate Amendments and requests the appointment of a conference committee with instructions to adjust the differences between the two houses:

House Conferees:iiKeffer, Jim - Chair/Bonnen/Davis, Yvonne/Hill/Ritter

Respectfully,

/s/Robert Haney, Chief Clerk

House of Representatives

BILLS SIGNED

The President announced the signing of the following enrolled bills in the presence of the Senate after the captions had been read:

HBi3011, HBi3017, HBi3024, HBi3038, HBi3093, HBi3098, HBi3114, HBi3131, HBi3147, HBi3171, HBi3182, HBi3195, HBi3210, HBi3211, HBi3225, HBi3236, HBi3261, HBi3266, HBi3270, HBi3273, HBi3290, HBi3291, HBi3295, HBi3300, HBi3352, HBi3353, HBi3355, HBi3367, HBi3392, HBi3407, HBi3435, HBi3439, HBi3457, HBi3470, HBi3485, HBi3495, HBi3502, HBi3558, HBi3593, HBi3619, HBi3647.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1498 ADOPTED

Senator Eltife called from the President's table the Conference Committee Report on HBi1498. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Eltife, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

Saturday, May 26, 2007 SENATE JOURNAL 4637


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1060 ADOPTED

Senator Harris called from the President's table the Conference Committee Report on HBi1060. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Harris, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

(Senator Eltife in Chair)

CONFERENCE COMMITTEE ON HOUSE BILL 1386

Senator Fraser called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi1386 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi1386 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Fraser, Chair; Eltife, Watson, Carona, and West.

CONFERENCE COMMITTEE ON HOUSE BILL 2094

Senator Carona called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi2094 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi2094 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Carona, Chair; Ellis, Estes, Wentworth, and Whitmire.

CONFERENCE COMMITTEE ON HOUSE BILL 3693

Senator Fraser called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3693 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi3693 before appointment.

There were no motions offered.

4638 80th Legislature — Regular Session 68th Day


Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Fraser, Chair; VanideiPutte, Estes, Shapiro, and Seliger.

CONFERENCE COMMITTEE ON HOUSE BILL 2207

Senator Watson called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi2207 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi2207 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Watson, Chair; Harris, Duncan, Hinojosa, and Carona.

SENATE BILL 776 WITH HOUSE AMENDMENT

Senator Jackson called SBi776 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

Amendment

Amend SBi776 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to certain educational requirements applicable to the regulation of the practice of chiropractic.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubsection (a), Section 201.052, Occupations Code, is amended to read as follows:

(a)iiA person is not eligible to serve as a member of the board if the person:

(1)iiis a member of the faculty or board of trustees of a chiropractic school or a doctor of chiropractic degree program;

(2)iiis a stockholder in a chiropractic school or college; or

(3)iihas a financial interest in a chiropractic school or college.

SECTIONi2.iiSubsection (a), Section 201.159, Occupations Code, is amended to read as follows:

(a)iiThe board shall preserve a record of its proceedings in a register that contains:

(1)iithe name, age, place, and duration of residence of each applicant for a license;

(2)iithe amount of time spent by the applicant in the study of chiropractic in respective doctor of chiropractic degree programs [schools]; and

(3)iiother information the board desires to record.

Saturday, May 26, 2007 SENATE JOURNAL 4639


SECTIONi3.iiSubsections (a) and (d), Section 201.302, Occupations Code, are amended to read as follows:

(a)iiAn applicant for a license by examination must present satisfactory evidence to the board that the applicant:

(1)iiis at least 18 years of age;

(2)iiis of good moral character;

(3)iihas completed 90 semester hours of college courses [at a school] other than courses included in a doctor of chiropractic degree program [school]; and

(4)iiis either a graduate or a final semester student of a bona fide reputable doctor of chiropractic degree program [school].

(d)iiNotwithstanding Subsection (a)(3), if the Council on Chiropractic Education or another national chiropractic education accreditation organization recognized by the board requires a number of semester hours of college courses [at a school] other than courses included in a doctor of chiropractic degree program [school] that is greater or less than the number of hours specified by that subsection to qualify for admission to a doctor of chiropractic degree program [school], the board may adopt the requirement of that organization if the board determines that requirement to be appropriate.

SECTIONi4.iiSubsection (d), Section 201.303, Occupations Code, is amended to read as follows:

(d)iiA bona fide reputable doctor of chiropractic degree program [school] that satisfies Section 201.302(a)(4) is one that:

(1)iihas entrance requirements and a course of instruction as high as those of a better class of doctor of chiropractic degree programs [schools] in the United States;

(2)iimaintains a resident course of instruction equivalent to:

(A)iinot less than four terms of eight months each; or

(B)iinot less than the number of semester hours required by The University of Texas for a bachelor of arts or bachelor of science degree;

(3)iiprovides a course of instruction in the fundamental subjects listed in Section 201.305(b); and

(4)iihas the necessary teaching staff and facilities for proper instruction in all of the fundamental subjects listed in Section 201.305(b).

SECTIONi5.iiSection 201.309, Occupations Code, is amended to read as follows:

Sec.i201.309.iiLICENSE ISSUANCE TO CERTAIN OUT-OF-STATE APPLICANTS.iiThe board shall issue a license to practice chiropractic to an out-of-state applicant who:

(1)iisubmits a written application to the board on a form prescribed by the board, accompanied by the application fee set by the board and any other information requested by the board;

(2)iiis licensed in good standing to practice chiropractic in another state or foreign country that has licensing requirements substantially equivalent to the requirements of this chapter;

(3)iihas not been the subject of a disciplinary action and is not the subject of a pending investigation in any jurisdiction in which the applicant is or has been licensed;

4640 80th Legislature — Regular Session 68th Day


(4)iihas graduated from a doctor of chiropractic degree program [school] accredited by the Council on Chiropractic Education and approved by rule by the board;

(5)iihas passed a national or other examination recognized by the board relating to the practice of chiropractic;

(6)iihas passed the board's jurisprudence examination;

(7)iihas practiced chiropractic:

(A)iifor at least the three years immediately preceding the date of the application under this section; or

(B)iias a chiropractic educator in [at] a doctor of chiropractic degree program [school] accredited by the Council on Chiropractic Education for at least the three years immediately preceding the date of the application under this section; and

(8)iimeets any other requirements adopted by rule by the board under this chapter.

SECTIONi6.iiThe change in law made by this Act applies to an applicant who files an application for a license under Chapter 201, Occupations Code, on or after the effective date of this Act. An applicant who files an application before that date is governed by the law in effect on the date the application was filed, and the former law is continued in effect for that purpose.

SECTIONi7.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

The amendment was read.

Senator Jackson moved to concur in the House amendment to SBi776.

The motion prevailed by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1973 ADOPTED

Senator Nelson called from the President's table the Conference Committee Report on HBi1973. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Nelson, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 759 ADOPTED

Senator Nelson called from the President's table the Conference Committee Report on SBi759. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Nelson, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

Saturday, May 26, 2007 SENATE JOURNAL 4641


CONFERENCE COMMITTEE REPORT ON

SENATE BILL 36 ADOPTED

Senator Nelson called from the President's table the Conference Committee Report on SBi36. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Nelson, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

SENATE RESOLUTION 1170

Senator Nelson offered the following resolution:

BE IT RESOLVED by the Senate of the State of Texas, 80th Legislature, Regular Session, 2007, That Senate Rule 12.03 be suspended in part as provided by Senate Rule 12.08 to enable the conference committee appointed to resolve the differences on SBi993 (nursing peer review and the regulation of the practice of nursing) to consider and take action on the following matters:

Senate Rules 12.03(3) and (4) are suspended to permit the committee to add new text to Subsection (a), Section 301.355, Occupations Code, to read as follows:

(a)iiThe president of a medical and dental unit, as defined by Section 61.003, Education Code, shall determine whether a nurse who is employed by the unit for practice in patient care or in clinical activities is a full-time employee for purposes of:

(1)iiemployees group benefits under Chapter 1551 or 1601, Insurance Code;

(2)iileave under Chapter 661 or 662, Government Code; and

(3)iilongevity pay under Section 659.043, Government Code.

Explanation: The change is necessary to require the president of a medical or dental unit to determine whether certain nurses are full-time employees for purposes of employees group benefits under Chapter 1601, Insurance Code, and leave under Chapter 662, Government Code.

SR 1170 was read and was adopted without objection.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 993 ADOPTED

Senator Nelson called from the President's table the Conference Committee Report on SBi993. The Conference Committee Report was filed with the Senate on Thursday, May 24, 2007.

On motion of Senator Nelson, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3849 ADOPTED

Senator Hinojosa called from the President's table the Conference Committee Report on HBi3849. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

4642 80th Legislature — Regular Session 68th Day


On motion of Senator Hinojosa, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

GUESTS PRESENTED

Senator Watson was recognized and introduced to the Senate family members of the late Clifford Antone:iihis sisters, Susan Antone and Janelle Raad; his niece, Georgette Raad; and his nephew, Jamal Raad.

The Senate welcomed its guests.

GUESTS PRESENTED

Senator Shapleigh, on behalf of Senator Ellis, was recognized and introduced to the Senate students from Pro-Vision School in Houston, accompanied by their teachers and parents.

The Senate welcomed its guests.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 126 ADOPTED

Senator Harris, on behalf of Senator Seliger, called from the President's table the Conference Committee Report on HBi126. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Harris, on behalf of Senator Seliger, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1383 ADOPTED

Senator Harris, on behalf of Senator Seliger, called from the President's table the Conference Committee Report on SBi1383. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Harris, on behalf of Senator Seliger, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1714 ADOPTED

Senator Harris, on behalf of Senator Seliger, called from the President's table the Conference Committee Report on SBi1714. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Harris, on behalf of Senator Seliger, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

Saturday, May 26, 2007 SENATE JOURNAL 4643


CONFERENCE COMMITTEE ON HOUSE BILL 442

Senator Deuell called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi442 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi442 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Deuell, Chair; Hinojosa, Eltife, Seliger, and Lucio.

CONFERENCE COMMITTEE ON HOUSE BILL 1801

Senator Hegar called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi1801 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi1801 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Hegar, Chair; Seliger, Hinojosa, Deuell, and Nichols.

CONFERENCE COMMITTEE ON HOUSE BILL 2006

Senator Janek called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi2006 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi2006 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Janek, Chair; Duncan, Carona, Shapleigh, and Eltife.

CONFERENCE COMMITTEE ON HOUSE BILL 3385

Senator Janek called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3385 and moved that the request be granted.

The motion prevailed without objection.

4644 80th Legislature — Regular Session 68th Day


The Presiding Officer asked if there were any motions to instruct the conference committee on HBi3385 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Janek, Chair; Fraser, Estes, Averitt, and Watson.

CONFERENCE COMMITTEE ON HOUSE BILL 3838

Senator Hegar called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3838 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi3838 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Hegar, Chair; Duncan, Estes, Uresti, and Hinojosa.

HOUSE CONCURRENT RESOLUTION 265

The Presiding Officer, Senator Eltife in Chair, laid before the Senate the following resolution:

WHEREAS, Major James R. Stegall (Ret.) of Austin rendered exceptional service to this country as an aviator in two wars and as a career officer in the United States Army; and

WHEREAS, Born in Bullard on February 6, 1922, and raised in East Austin, Major Stegall enlisted in the Texas Army National Guard directly after his graduation from Austin High School in 1940; he was mobilized into federal service on Novemberi25, 1940, as part of the 36th Infantry Division; and

WHEREAS, Major Stegall shipped out with the 36th Infantry for North Africa in April 1943 and saw his first combat the following September, when American forces established a beachhead at Salerno, Italy; appointed as a liaison pilot, Major Stegall served as a forward observer for the artillery, spotting targets and adjusting artillery fire to increase its effectiveness exponentially; he performed this duty flying at 55 miles per hour in unarmed, single-engine Piper Cub L-4s, known as Grasshoppers, which measured a mere 21 feet in length and 35 feet from wing tip to wing tip; Major Stegall's tour of duty in Italy extended into 1944 and included service at Rapido River; and

WHEREAS, At the conclusion of World War II, Major Stegall decided to make the army his career; subsequently designated an army aviator, he saw combat again in the Korean War, flying Grasshoppers once more in support of artillery; after landing with the 7th Infantry Division at Incheon in September 1950, he took part in the push to the Yalu River, in fighting near the Chosin Reservoir, and later in the drive back to the 38th parallel; and

Saturday, May 26, 2007 SENATE JOURNAL 4645


WHEREAS, Time and again, Major Stegall demonstrated unflinching courage and tenacity; once in Italy, a group of German fighters shot his wing strut in half, but he was able to land his plane, jump into another, and continue his mission; in Korea, when the Chinese overran American troops and some of the latter were left behind, encircled by the enemy, Major Stegall returned to the trapped soldiers seven times to bring out the wounded, in spite of intense ground fire; and

WHEREAS, Major Stegall was awarded the Silver Star with one Oak Leaf Cluster, the Distinguished Flying Cross with one Oak Leaf Cluster, the Air Medal with 25 Oak Leaf Clusters, the Army Commendation Ribbon, and a host of service medals and appendages; and

WHEREAS, This valiant Texan retired from the service in 1961; he and his wife, Doris, now make their home in East Austin, where they have long resided; and

WHEREAS, In recognition of his outstanding military record, the Texas Aviation Association has nominated Major Stegall for induction into the Texas Aviation Hall of Fame at the Lone Star Flight Museum in Galveston; now, therefore, be it

RESOLVED, That the 80th Legislature of the State of Texas hereby extend to Major James R. Stegall its profound appreciation for a job well done and recommend that he be inducted into the Texas Aviation Hall of Fame; and, be it further

RESOLVED, That an official copy of this resolution be prepared for Major Stegall and forwarded to the Texas Aviation Hall of Fame and the Lone Star Flight Museum as an expression of high regard by the Texas House of Representatives and Senate.

WATSON

HCR 265 was read.

On motion of Senator Watson and by unanimous consent, the resolution was considered immediately and was adopted by a viva voce vote.

All Members are deemed to have voted "Yea" on the adoption of the resolution except as follows:

Absent-excused:iiGallegos.

GUESTS PRESENTED

Senator Watson was recognized and introduced to the Senate Major James R. Stegall of Austin and his wife, Doris.

The Senate welcomed its guests.

CONFERENCE COMMITTEE ON HOUSE BILL 3154

Senator Deuell called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3154 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi3154 before appointment.

There were no motions offered.

4646 80th Legislature — Regular Session 68th Day


Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Deuell, Chair; Janek, VanideiPutte, Hinojosa, and Seliger.

RECESS

On motion of Senator Brimer, the Senate at 12:52 p.m. recessed until 1:30ip.m. today.

AFTER RECESS

The Senate met at 1:35 p.m. and was called to order by the President.

RECESS

On motion of Senator Whitmire, the Senate at 1:40 p.m. recessed until 2:30ip.m. today.

AFTER RECESS

The Senate met at 2:45 p.m. and was called to order by the President.

CONFERENCE COMMITTEE ON HOUSE BILL 3

Senator Averitt called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3 and moved that the request be granted.

The motion prevailed without objection.

The President asked if there were any motions to instruct the conference committee on HBi3 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Averitt, Chair; Eltife, Shapiro, Hegar, and Hinojosa.

CONFERENCE COMMITTEE ON HOUSE BILL 4

Senator Averitt called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi4 and moved that the request be granted.

The motion prevailed without objection.

The President asked if there were any motions to instruct the conference committee on HBi4 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Averitt, Chair; Seliger, Deuell, Uresti, and Nichols.

Saturday, May 26, 2007 SENATE JOURNAL 4647


CONFERENCE COMMITTEE ON HOUSE BILL 610

Senator Hegar called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi610 and moved that the request be granted.

The motion prevailed without objection.

The President asked if there were any motions to instruct the conference committee on HBi610 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Hegar, Chair; Nichols, Patrick, Watson, and West.

CONFERENCE COMMITTEE ON HOUSE BILL 2833

Senator Seliger called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi2833 and moved that the request be granted.

The motion prevailed without objection.

The President asked if there were any motions to instruct the conference committee on HBi2833 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Seliger, Chair; VanideiPutte, Hegar, Deuell, and Williams.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1522 ADOPTED

Senator Williams called from the President's table the Conference Committee Report on HBi1522. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Williams, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 548 ADOPTED

Senator Carona called from the President's table the Conference Committee Report on SBi548. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Carona, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

4648 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1594 ADOPTED

Senator Carona called from the President's table the Conference Committee Report on HBi1594. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Carona, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3105 ADOPTED

Senator Duncan called from the President's table the Conference Committee Report on HBi3105. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Duncan, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

SENATE BILL 1833 WITH HOUSE AMENDMENT

Senator Duncan called SBi1833 from the President's table for consideration of the House amendment to the bill.

The President laid the bill and the House amendment before the Senate.

Amendment

Amend SBi1833 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the administration and powers of the Canadian River Municipal Water Authority.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 5(b), Chapter 243, Acts of the 53rd Legislature, Regular Session, 1953, is amended to read as follows:

(b).iiThe Board of Directors shall hold regular meetings, the date thereof to be established in the District's bylaws or by resolution. The President or any three members may call such special meetings as may be necessary in the administration of the District's business, provided that at least five days prior to the meeting date, the Secretary shall have mailed notice thereof to the address which each member shall file with the Secretary. Notices of special meetings may be waived in writing by any Director. The Board of Directors or Board committees may hold meetings by telephone conference call, videoconference call, or through communications over the Internet, in accordance with procedures provided by Subchapter F, Chapter 551, Government Code, if determined to be necessary or convenient by the President or any three members. Each Director shall receive a fee as provided by general law [of not more than Fifty ($50.00) Dollars for each attendance at a Board meeting and a fee of not more than Fifty ($50.00) Dollars] for each day devoted to District business

Saturday, May 26, 2007 SENATE JOURNAL 4649


[other than a Board meeting]. Each Director is also entitled to reimbursement for actual expenses incurred in carrying out District business, including attending a Board meeting. Payment to a Director for services performed and expenses incurred is subject to the approval of a majority of the Board.

SECTIONi2.iiSection 13, Chapter 243, Acts of the 53rd Legislature, Regular Session, 1953, is amended to read as follows:

Sec.i13.iiDISTRICT POWERS. In addition to those herein otherwise mentioned, the District shall be and is hereby authorized to exercise the following powers, rights, privileges and functions:

(a)iiTo store, control, conserve, protect, distribute and utilize within or without the District or within or without the state the storm and flood waters and unappropriated flow of the Canadian River and its tributaries, and to prevent the escape of any such waters without first obtaining therefrom a maximum of public benefit, by the construction of a dam or dams across said river and its tributaries, or otherwise, by complying with Chapter 11, Water Code, and in such manner as shall fully recognize and be in harmony with the limitations of use of the waters of said river provided in the "Canadian River Compact" appearing as Chapter 43, Water Code. The District is also empowered to provide by purchase, contract, lease, gift, or in any other lawful manner, and to develop all facilities within or without the District or within or without the state deemed necessary or useful for the purpose of storing, controlling, conserving, protecting, distributing, processing and utilizing such surface water and the transportation thereof to the cities and areas comprising the District for municipal, domestic, industrial and other useful purposes permitted by law.

(b)iiTo acquire and develop within or without the District or within or without the state any other available source of surface, storm, flood, underground, or other water supply and to construct, acquire and develop all facilities deemed necessary or useful with respect thereto.

(c)iiTo acquire, construct, develop, operate, and maintain any and all property of any kind, real, personal, or mixed, or any interest in property whether within or without the District or within or without the state and to enter into any contracts with any person or legal entity and take all actions necessary or convenient in order to protect and preserve, and to prevent, eliminate, reduce, or minimize the pollution, contamination, or deterioration of the quality of, the water of the Canadian River or any of its tributaries or the water of any other source of water supply to the District in order to facilitate the use of the water for any lawful purpose.

(d)iiTo acquire, construct, develop, operate, and maintain any facilities or systems for drilling, pumping, capturing, reducing, intercepting, eliminating, impounding, controlling, using, injecting or otherwise capturing and disposing of brine, brackish water, saltwater, saline water, or other water contaminated by any type of chlorine, sodium, sulfates, or other chemical condition or characteristic detrimental to the quality of the water, whether the source of contaminated water is groundwater or surface water, within or without the District or within or without the state, and whether the facilities or systems are located within or without the District or within or without the state.

4650 80th Legislature — Regular Session 68th Day


(e)iiTo acquire or utilize surface or underground water rights and to develop surface or underground water resources in any manner in furtherance of the purposes described in Subsections (c) and (d) of this section.

(f)iiTo declare any facilities or system acquired or constructed under Subsections (a) through (e) of this section to be a part of the District's water supply system.

(g)iiTo acquire by purchase, construction, lease, gift, or in any other lawful manner, and to maintain, use and operate any and all property of any kind, real, personal or mixed, or any interest therein, within or without the boundaries of the District or within or without the state, necessary or convenient to the exercise of the powers, rights, privileges and functions possessed by the District under this Act.

(h)iiTo acquire by condemnation any and all property of any kind, real, personal, or mixed, or any interest therein, within or without the boundaries of the District, necessary or convenient to the exercise of the powers, rights, privileges and functions possessed by the District, in the manner provided by Chapter 21, Property Code, relating to eminent domain. The amount of and character of the property thus to be acquired shall be determined by the Board of Directors, provided that the District shall not have the right to so condemn any property which may be owned by any other political subdivision, city or town; provided, however, that as against persons, firms, and corporations, or receivers or trustees thereof, who have the power of eminent domain, the fee title may not be condemned, but the District may condemn only an easement. It is specifically provided, however, that the District does not have the authority to condemn underground water rights.

(i)iiTo sell or otherwise dispose of any surplus property of any kind, real, personal, or mixed, or any interest therein, which shall not be necessary to the operation of the District in accordance with general law applicable to a municipality or to a district created under Section 59, Article XVI, Texas Constitution; provided, however, that in all cases in which the Board of Directors considers the value of surplus real [such] property to be in excess of One Thousand [($1,000.00)] Dollars, the property [same] shall be sold only upon advertisement and competitive bids.

(j)iiTo require the relocation of roads and highways in the manner and to the extent permitted to Districts organized under Section 59 of Article XVI of the Texas Constitution; the cost of relocation of any roads, highways or railroads or telephone or telegraph properties or facilities made necessary by this Act and any reasonable actual damage incurred in changing and adjusting the lines and grades of railroads or such highways or roads or telephone or telegraph properties or facilities shall be paid by the District.

(k)iiTo make contracts with any person or legal entity, including the United States, the state, any political subdivision or body politic and corporate of the state, any other state, any political subdivision or body politic and corporate within any other state, and any interstate compact commission or similar organization, necessary or convenient to the exercise of the powers, rights, privileges and functions of the District and to take all actions and execute all instruments necessary or convenient to the exercise of the powers, rights, privileges and functions of the District.

(l)iiTo make or cause to be made surveys and engineering investigations for the information of the District, to facilitate the accomplishment of the purposes for which it is created.

Saturday, May 26, 2007 SENATE JOURNAL 4651


(m)iiTo borrow money for its corporate purposes, and without limitation of the generality of the foregoing to borrow money and accept grants, gratuities or other support from the United States of America or the State of Texas, or from any corporation or agency created or designated by the United States of America or the State of Texas, and, in connection with any such loan, grant, or other support, to enter into such arrangement with the United States of America or the State of Texas or such corporation or agency, of either as the District may deem advisable.

(n)iiTo make and issue its negotiable bonds for moneys borrowed in the manner and to the extent provided in this Act and with reference thereto or otherwise to contract in any manner it shall see fit and as may be required by any law pertaining to loans, grants or other support received from the United States of America or the State of Texas or from any corporation or agency, of either of them.

(o)iiTo make such contracts in the issuance of bonds as may be considered necessary or convenient to insure the marketability thereof.

(p)iiTo sue or be sued in its corporate name, provided that if the District prevails in a suit against a person or governmental entity entitled to recover attorney's fees, costs for expert witnesses, or any other related costs, the District is entitled to recover those fees and costs according to the same terms that would have governed recovery for the other person or governmental entity if the District had not prevailed.

(q)iiTo adopt, use and alter a corporate seal.

(r)iiTo make by-laws for the management and regulation of its affairs.

(s)iiTo fix and collect charges and rates for water services furnished by it and to impose penalties for failure to pay such charges and rates when due, provided that such charges, rates and penalties shall be fixed only by unanimous vote of the members of the Board of Directors constituting a quorum and who are present at a regular meeting.

(t)iiTo cooperate and to enter into contracts with cities, persons, firms, corporations and public agencies for the purpose of supplying and selling them surface, storm, flood, underground, and other water for municipal, domestic, industrial, and other useful purposes permitted by law, provided that cities and areas constituting the District shall be accorded priority in the allocation of the District's available surface, storm, flood, underground, and other water, and the Board of Directors shall prescribe rules to effectuate this provision. Any such contract may be upon such terms and for such time as the parties may agree, and it may provide that it shall continue in effect until the District's bonds specified therein and refunding bonds issued in lieu of such bonds are fully paid. The authority of each member or other city to enter into any contract with the District for the sale of water or other services or for any other purpose within the powers, rights, privileges, and functions of the District is vested exclusively in the governing body of each member or other city notwithstanding any provision of any home rule charter or any local ordinance of such member or other city, or of any other provision of any other law placing any restriction, limitation, or requirement on the authority of the governing body of any member or other city to enter into any such contract. No provision of the home rule charter or of any other ordinance of any member or other city, and no provision of any other law in conflict herewith will invalidate or impair, in whole or in part, the enforceability and validity of any contract entered into by the District with any

4652 80th Legislature — Regular Session 68th Day


member or other city pursuant to the powers, rights, and privileges or functions of the district. In the event the District shall have contracted with the United States Government or any of its agencies for a source of water supply or for the furnishing of any facilities necessary or useful to the District in carrying out its purposes, any such contract entered into under authority hereof may provide that it shall continue until the District has fully discharged all obligations incurred by it under the terms of its contract with the United States Government or its agencies. The District is also authorized to purchase surface, storm, flood, underground, and other water supply from any person, firm, corporation or public agency, or from the United States Government or any of its agencies.

(u)iiTo operate and maintain with the consent of the governing body of any city or town located within the District, any works, plants or facilities of any such city deemed necessary or convenient to the accomplishment of the purposes for which the District is created.

(v)iiTo levy, assess and collect ad valorem taxes to provide funds necessary to construct or acquire, maintain and operate improvements, works, plants and facilities deemed essential and beneficial to the District upon a favorable majority vote of the qualified property taxpaying electors voting at an election held for that purpose within the District; and also, when so authorized, to levy, assess and collect taxes to provide funds adequate to defray the cost of the maintenance and operation and administration of the District. Elections for the voting of such taxes shall be ordered by the Board of Directors and shall be held and conducted as provided herein for elections for the issuance of bonds and the levy of taxes in support thereof. When so levied such taxes, as well as taxes hereinafter provided to be levied in support of bond indebtedness, shall constitute a lien on the property against which such taxes are levied and assessed, and limitations shall not bar the collection and enforcement thereof.

(w)iiTo do any and all acts and things necessary or convenient to the exercise of the powers, rights, privileges or functions conferred upon or permitted the District by any other law.

SECTIONi3.iiSection 14, Chapter 243, Acts of the 53rd Legislature, Regular Session, 1953, is amended to read as follows:

Sec.i14.ii[Awarding Construction or Purchase] Contracts. The District may negotiate, enter, and modify a contract in accordance with general law applicable to a municipality or to a district created under Section 59, Article XVI, Texas Constitution [Any contract requiring an expenditure of more than Twenty-five Thousand ($25,000.00) Dollars shall not be made until after publication of a notice to bidders once each week for two weeks before awarding the contract. Such notice shall be sufficient if it states the time and place when and where the bids will be opened, the general nature of the work to be done, or the material, equipment or supplies to be purchased, and states when and upon what terms copies of the plans and specifications may be obtained. The publication shall be in a newspaper published in the District designated by the Board of Directors].

SECTIONi4.iiSection 13, Chapter 243, Acts of the 53rd Legislature, Regular Session, 1953, as amended by this Act, applies only to a suit filed on or after the effective date of this Act. A suit filed before that date is governed by the law in effect on the date the suit is filed, and that law is continued in effect for that purpose.

Saturday, May 26, 2007 SENATE JOURNAL 4653


SECTIONi5.iiSection 14, Chapter 243, Acts of the 53rd Legislature, Regular Session, 1953, as amended by this Act, applies only to a contract entered into on or after the effective date of this Act. A contract entered into before that date is governed by the law in effect on the date of the contract, and that law is continued in effect for that purpose.

SECTIONi6.iiThis Act takes effect September 1, 2007.

The amendment was read.

Senator Duncan moved to concur in the House amendment to SBi1833.

The motion prevailed by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

MESSAGE FROM THE HOUSE

HOUSE CHAMBER

Austin, Texas

May 26, 2007

The Honorable President of the Senate

Senate Chamber

Austin, Texas

Mr. President:

I am directed by the House to inform the Senate that the House has taken the following action:

THE HOUSE HAS APPOINTED CONFEREES ON THE FOLLOWING MEASURES:

HB 2265

House Conferees:iiHaggerty - Chair/Chavez/Pickett/Quintanilla/Talton

THE HOUSE HAS GRANTED THE REQUEST OF THE SENATE FOR THE APPOINTMENT OF A CONFERENCE COMMITTEE ON THE FOLLOWING MEASURES:

SB 3 (non-record vote)

House Conferees:iiPuente - Chair/Callegari/Hamilton/Hartnett/Laubenberg

SB 11 (non-record vote)

House Conferees:iiCorte, Frank - Chair/Burnam/Escobar/Herrero/Isett, Carl

SB 101 (non-record vote)

House Conferees:iiMorrison - Chair/Branch/Howard, Donna/Villarreal/Woolley

SB 228 (non-record vote)

House Conferees:iiEiland - Chair/Bonnen/Dutton/Gonzalez Toureilles/Strama

SB 406 (non-record vote)

House Conferees:iiHartnett - Chair/Gonzales/Goolsby/Hopson/Hughes

SB 530 (non-record vote)

House Conferees:iiEissler - Chair/Delisi/Hochberg/Patrick, Diane/Zedler

4654 80th Legislature — Regular Session 68th Day


SB 718 (non-record vote)

House Conferees:iiGattis - Chair/Cook, Robby/Hopson/Kolkhorst/Van Arsdale

SB 758 (non-record vote)

House Conferees:iiRose - Chair/Davis, John/King, Susan/Naishtat/Parker

SB 765 (non-record vote)

House Conferees:iiFrost - Chair/Cook, Robby/Heflin/Kolkhorst/Otto

SB 909 (non-record vote)

House Conferees:iiMadden - Chair/Hochberg/Jones, Delwin/McReynolds/Oliveira

SB 960 (non-record vote)

House Conferees:iiHaggerty - Chair/Chavez/Pickett/Quintanilla/Talton

SB 964 (non-record vote)

House Conferees:iiHill - Chair/Alonzo/Davis, Yvonne/Hartnett/Krusee

SB 965 (non-record vote)

House Conferees:iiHill - Chair/Alonzo/Davis, Yvonne/Hartnett/Krusee

SB 1058 (non-record vote)

House Conferees:iiNoriega, Rick - Chair/Corte, Frank/Escobar/Garcia/Herrero

SB 1119 (non-record vote)

House Conferees:iiMurphy - Chair/Bailey/Delisi/Elkins/Hill

SB 1266 (non-record vote)

House Conferees:iiKrusee - Chair/Haggerty/Hill/Phillips/Pickett

SB 1332 (non-record vote)

House Conferees:iiChavez - Chair/Branch/Deshotel/Dutton/Frost

SB 1436 (non-record vote)

House Conferees:iiCreighton - Chair/Gattis/Guillen/O'Day/Pickett

SB 1731 (non-record vote)

House Conferees:iiIsett, Carl - Chair/Delisi/Gattis/Rose/Taylor

SB 1871 (non-record vote)

House Conferees:iiHochberg - Chair/Eissler/Kolkhorst/Mowery/Olivo

SB 1879 (non-record vote)

House Conferees:iiHamilton - Chair/Creighton/Delisi/Frost/Hopson

SB 1908 (non-record vote)

House Conferees:iiMenendez - Chair/Bailey/Chisum/Swinford/Thompson

SB 2003 (non-record vote)

House Conferees:iiPhillips - Chair/Gonzalez Toureilles/King, Tracy/Parker/Puente

THE HOUSE HAS ADOPTED THE FOLLOWING CONFERENCE COMMITTEE REPORTS:

HB 1594 (144 Yeas, 0 Nays, 2 Present, not voting)

SB 792 (127 Yeas, 19 Nays, 2 Present, not voting)

Saturday, May 26, 2007 SENATE JOURNAL 4655


THE HOUSE HAS DISCHARGED ITS CONFEREES AND CONCURRED IN SENATE AMENDMENTS TO THE FOLLOWING MEASURES:

HB 1610 (139 Yeas, 1 Nays, 2 Present, not voting)

HB 3275 (142 Yeas, 0 Nays, 2 Present, not voting)

HB 3838 (146 Yeas, 0 Nays, 2 Present, not voting)

THE HOUSE HAS TAKEN THE FOLLOWING OTHER ACTION:

HB 1267, The House has refused to concur in Senate amendments to the following measure and requests the appointment of a conference committee to adjust the differences between the two houses:
House Conferees with instructions: Pena - Chair/Escobar/Gattis/Hartnett/Talton

SB 9, The House grants the request of the Senate and appoints the following conferees:
House Conferees with instructions: Branchi-iChair/ Eissler/ Madden/ McReynolds/ Morrison

Respectfully,

/s/Robert Haney, Chief Clerk

House of Representatives

SENATE BILL 839 WITH HOUSE AMENDMENT

Senator Duncan called SBi839 from the President's table for consideration of the House amendment to the bill.

The President laid the bill and the House amendment before the Senate.

Floor Amendment No. 1

Amend SB 839 (House committee printing) as follows:

(1)iiIn SECTION 5 of the bill, in amended Subsection (a)(1), Section 614.017, Health and Safety Code (page 5, line 8), between "continuity of care" and "[this chapter]", insert "and services".

(2)iiIn SECTION 5 of the bill, in amended Subsection (a)(2), Section 614.017, Health and Safety Code (page 5, line 15), between "continuity of care" and "[this chapter]", insert "and services".

(3)iiIn SECTION 5 of the bill, in proposed Subsection (e), Section 614.017, Health and Safety Code (page 7, line 12), strike "other than as authorized by this section or other law or without" and substitute:

for purposes other than continuity of care and services, except as authorized by other law or by

The amendment was read.

Senator Duncan moved to concur in the House amendment to SBi839.

The motion prevailed by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

4656 80th Legislature — Regular Session 68th Day


SENATE BILL 1232 WITH HOUSE AMENDMENTS

Senator Zaffirini called SBi1232 from the President's table for consideration of the House amendments to the bill.

The President laid the bill and the House amendments before the Senate.

Amendment

Amend SBi1232 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the manner of payment of higher education tuition and fees and to the repayment of emergency student loans.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 54.007, Education Code, is amended by amending Subsections (a), (b), and (d), by amending and relettering Subsection (f), as added by Chapter 888, Acts of the 79th Legislature, Regular Session, 2005, as Subsection (g), and by adding Subsection (b-1) to read as follows:

(a)iiThe governing board of each institution of higher education shall provide for the payment of tuition and fees for [during] the fall and spring semesters through one of the following alternatives:

(1)iiexcept as provided by Subsection (b-1), full payment of tuition and fees in advance of the beginning of the semester; or

(2)ii[one-half] payment in installments under one or more payment plan options that require the first payment to be made [of tuition and fees] in advance of the beginning of the semester and the final payment to be made before the last day of the semester[, one-quarter payment prior to the start of the sixth class week, and the final one-quarter payment before the beginning of the eleventh class week].

(b)iiThe governing board of each institution of higher education shall provide for [may permit] the payment of tuition and fees for [during] a summer term through one of the following alternatives:

(1)iiexcept as provided by Subsection (b-1), full [for a student enrolled for a summer term of 12 weeks or longer that is not covered by Subdivision (2), one-half] payment of tuition and fees in advance of the beginning of the summer term[, one-quarter payment before the beginning of the fifth class week, and the final one-quarter payment before the beginning of the ninth class week];

(2)ii[for a student enrolled for a summer term of 16 weeks or longer, one-half] payment in installments under one or more payment plan options that require the first payment to be made [of tuition and fees] in advance of the beginning of the summer term and the final payment to be made before the last day of the term[, one-quarter payment before the beginning of the sixth class week, and the final one-quarter payment before the beginning of the 11th class week]; or [and]

(3)iifor a student enrolled for a summer term [not covered by Subdivision (1) or (2)] in a public junior college, public technical institute, or public state college, one-half payment of tuition and fees in advance of the beginning of the summer term and the remaining amount in one or two later payments to be made in the percentages

Saturday, May 26, 2007 SENATE JOURNAL 4657


and by the dates determined by the governing board of the college or institute, provided that the final payment must be made before the beginning of the last week of the summer term.

(b-1)iiA student who owes a balance of tuition and fees as a result of a change in the student's class schedule or who owes a balance of tuition and fees of less than $100 after making an insufficient payment of tuition and fees previously due shall pay the balance owed not later than the next payment date established by the governing board under a payment plan adopted under Subsection (a)(2) or (b)(2), as applicable.

(d)iiA student who fails to make a full payment of the required amount of tuition and fees, including any incidental fees, by the due date may be prohibited from registering for classes until full payment is made. A student who fails to make full payment prior to the end of the semester or summer term may be denied credit for the work done that semester or term. The governing board may not impose on a student any sanction authorized by this subsection unless the governing board includes in any written or electronic agreement authorized [promissory note signed] by the [a] student the following statement printed in bold-faced type or in capital letters: "A STUDENT WHO FAILS TO MAKE FULL PAYMENT OF TUITION AND FEES, INCLUDING ANY INCIDENTAL FEES, BY THE DUE DATE MAY BE PROHIBITED FROM REGISTERING FOR CLASSES UNTIL FULL PAYMENT IS MADE. A STUDENT WHO FAILS TO MAKE FULL PAYMENT PRIOR TO THE END OF THE SEMESTER OR TERM MAY BE DENIED CREDIT FOR THE WORK DONE THAT SEMESTER OR TERM." The governing board shall notify a student of any delinquent tuition or fee payment as soon as practicable. The institution's records may be adjusted to reflect the student's failure to have properly enrolled for that semester.

(g)i[(f)]iiThe governing board shall require a student who elects to pay tuition and fees by installment under this section to enter into a written or electronic agreement reflecting the terms and conditions required by this section for the installment plan provided for the student by the governing board.

SECTIONi2.iiSection 56.053(a), Education Code, as amended by Chapters 80 and 655, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows:

(a)iiThe governing board of each institution shall adopt rules providing for the terms of the loan, subject to the following:

(1)iithe loan must be repaid over a period not to exceed 90 days for a loan made for a regular semester or long summer session or over a proportionately shorter period for loans made for a six-week summer session;

(2)iithe loan must be evidenced by a written or electronic agreement providing for one of the following:

(A)ii[promissory note that bears] interest on the loan at a rate of not more than five percent per year; or

(B)iian origination fee of not more than three percent of the amount of the loan; and

(3)iithe [maximum] loan amount per student may not exceed [be greater than] an amount equal to the tuition and mandatory [required] fees for the courses in which the student is actually enrolling.

4658 80th Legislature — Regular Session 68th Day


[(3)iithe maximum loan amount per student may not be less than an amount equal to the tuition and required fees for the courses in which the student is actually enrolling, unless the institution determines that a lower amount would be in the best interest of the student.]

SECTIONi3.ii(a) The change in law made by this Act applies to payment of tuition and fees and to emergency student loans for an academic period beginning with the 2007 fall semester unless this Act takes effect after July 1, 2007, in which event the change in law applies beginning with the 2008 spring semester.

(b)iiPayment of tuition and fees and emergency student loans for an academic period before the semester provided by Subsection (a) of this section are covered by the applicable law in effect before the effective date of this Act, and the former law is continued in effect for that purpose.

SECTIONi4.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

Floor Amendment No. 1

Amend CSSB 1232 (House committee printing) in SECTION 2 of the bill, in amended Subsection (a)(2)(B), Section 56.053, Education Code (page 4, line 17), by striking "three" and substituting "1.25".

The amendments were read.

Senator Zaffirini moved to concur in the House amendments to SBi1232.

The motion prevailed by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE ON HOUSE BILL 3613

Senator Deuell called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3613 and moved that the request be granted.

The motion prevailed without objection.

The President asked if there were any motions to instruct the conference committee on HBi3613 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Deuell, Chair; VanideiPutte, Hinojosa, Eltife, and Seliger.

CONFERENCE COMMITTEE ON HOUSE BILL 1267

Senator Seliger called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi1267 and moved that the request be granted.

The motion prevailed without objection.

Saturday, May 26, 2007 SENATE JOURNAL 4659


The President asked if there were any motions to instruct the conference committee on HBi1267 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Seliger, Chair; Ellis, Duncan, Hinojosa, and Harris.

CONFERENCE COMMITTEE ON HOUSE BILL 3560

Senator Janek called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3560 and moved that the request be granted.

The motion prevailed without objection.

The President asked if there were any motions to instruct the conference committee on HBi3560 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Janek, Chair; Williams, Ellis, Fraser, and Brimer.

CONFERENCE COMMITTEE ON HOUSE BILL 2644

Senator West called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi2644 and moved that the request be granted.

The motion prevailed without objection.

The President asked if there were any motions to instruct the conference committee on HBi2644 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators West, Chair; Carona, Deuell, Janek, and Ellis.

CONFERENCE COMMITTEE ON HOUSE BILL 1168

Senator Shapleigh called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi1168 and moved that the request be granted.

The motion prevailed without objection.

The President asked if there were any motions to instruct the conference committee on HBi1168 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Shapleigh, Chair; Nelson, Duncan, Ogden, and Williams.

4660 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE ON HOUSE BILL 3315

Senator Duncan called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3315 and moved that the request be granted.

The motion prevailed without objection.

The President asked if there were any motions to instruct the conference committee on HBi3315 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Duncan, Chair; Ogden, Williams, Whitmire, and Zaffirini.

CONFERENCE COMMITTEE ON HOUSE BILL 3438

Senator Lucio called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3438 and moved that the request be granted.

The motion prevailed without objection.

The President asked if there were any motions to instruct the conference committee on HBi3438 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Lucio, Chair; Hinojosa, Averitt, Brimer, and Carona.

CONFERENCE COMMITTEE ON HOUSE BILL 3674

Senator Jackson called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3674 and moved that the request be granted.

The motion prevailed without objection.

The President asked if there were any motions to instruct the conference committee on HBi3674 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Jackson, Chair; Deuell, Harris, Patrick, and West.

CONFERENCE COMMITTEE ON HOUSE BILL 1113

Senator Uresti called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi1113 and moved that the request be granted.

The motion prevailed without objection.

Saturday, May 26, 2007 SENATE JOURNAL 4661


The President asked if there were any motions to instruct the conference committee on HBi1113 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Uresti, Chair; Hinojosa, Seliger, Hegar, and Deuell.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1123 ADOPTED

Senator Ellis called from the President's table the Conference Committee Report on SBi1123. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Ellis, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE ON

SENATE BILL 1436 DISCHARGED

On motion of Senator Ellis and by unanimous consent, the Senate conferees on SBi1436 were discharged.

Question — Shall the Senate concur in the House amendments to SBi1436?

Senator Ellis moved to concur in the House amendments to SBi1436.

The motion prevailed by the following vote:iiYeasi29, Naysi1.

Nays:iiWilliams.

Absent-excused:iiGallegos.

SENATE RESOLUTION 1160

Senator Wentworth offered the following resolution:

BE IT RESOLVED by the Senate of the State of Texas, 80th Legislature, Regular Session, 2007, That Senate Rule 12.03 be suspended in part as provided by Senate Rule 12.08 to enable the conference committee appointed to resolve the differences on SBi593 (proof of, and providing notice to certain beneficiaries under, a decedent's will) to consider and take action on the following matters:

(1)iiSenate Rule 12.03(4) is suspended to permit the committee to add a SECTION to the bill to amend Section 6.02, House Bill No. 391, Acts of the 80th Legislature, Regular Session, 2007, to read as follows:

SECTIONi5.iiSection 6.02, H.B. No. 391, Acts of the 80th Legislature, Regular Session, 2007, as effective September 1, 2007, is amended to read as follows:

SECTIONi6.02.iiThe changes in law made by this article apply only to[:

[(1)iithe estate of a decedent who dies before the effective date of this article, if the probate or administration of the estate is pending on or commenced on or after the effective date of this article; and

4662 80th Legislature — Regular Session 68th Day


[(2)] the estate of a decedent who dies on or after the effective date of this article.

Explanation:iiThe addition of the SECTION to the bill is necessary to make a technical change in the applicability of an amendment made by SECTION 6.01, House Bill No. 391, Acts of the 80th Legislature, Regular Session, 2007, to Section 85, Texas Probate Code.

(2)iiSenate Rule 12.03(1) is suspended to permit the committee to change the text of the SECTION of the bill that is renumbered in the conference committee report as SECTION 6 to read as follows:

SECTIONi6.iiThe changes in law made by Sections 1, 2, 3, and 4 of this Act apply only to the estate of a decedent who dies on or after the effective date of this Act. The estate of a decedent who dies before the effective date of this Act is governed by the law in effect on the date of the decedent's death, and the former law is continued in effect for that purpose.

Explanation:iiThe change to the applicability provision of the bill is necessary to reflect the addition of SECTION 5 to the conference committee report and to avoid having the applicability provision affect that added SECTION.

SR 1160 was read and was adopted without objection.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 593 ADOPTED

Senator Wentworth called from the President's table the Conference Committee Report on SBi593. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Wentworth, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

MESSAGE FROM THE HOUSE

HOUSE CHAMBER

Austin, Texas

May 26, 2007

The Honorable President of the Senate

Senate Chamber

Austin, Texas

Mr. President:

I am directed by the House to inform the Senate that the House has taken the following action:

THE HOUSE HAS GRANTED THE REQUEST OF THE SENATE FOR THE APPOINTMENT OF A CONFERENCE COMMITTEE ON THE FOLLOWING MEASURES:

SB 1951 (non-record vote)

House Conferees:iiHartnett - Chair/Gonzales/Goolsby/Hopson/Hughes

Respectfully,

/s/Robert Haney, Chief Clerk

House of Representatives

Saturday, May 26, 2007 SENATE JOURNAL 4663


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3928 ADOPTED

Senator Ogden called from the President's table the Conference Committee Report on HBi3928. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Ogden, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

SENATE RULE 8.02 SUSPENDED

(Referral to Committee)

Senator Hinojosa moved to suspend Senate Rule 8.02 to take up for consideration HCRi121 at this time.

The motion prevailed.

HOUSE CONCURRENT RESOLUTION 121

The President laid before the Senate the following resolution:

WHEREAS, The Texas Legislative Medal of Honor was established to honor gallant and intrepid service by a member of the state or federal military forces, and through his courageous actions in Vietnam, Sergeant Alfredo "Freddy" Gonzalez distinguished himself as a worthy recipient of this prestigious honor; and

WHEREAS, Born May 23, 1946, in Edinburg and a graduate of Edinburg High School, Sergeant Gonzalez enlisted in the U.S. Marine Corps in May 1965; after his first tour of duty in Vietnam, he was chosen to train new marines for guerilla warfare; and

WHEREAS, A few months later, Sergeant Gonzalez learned of an ambush in which men who had served under him had been killed; impelled by a strong sense of duty to his fellow marines and to his country, he volunteered for a second tour in Vietnam; and

WHEREAS, When, at the end of January 1968, North Vietnamese and Viet Cong troops launched the massive Tet Offensive, Sergeant Gonzalez and his platoon were ordered to Hue to relieve the pressure on that city; en route to Hue, the platoon's convoy was hit by heavy fire on several occasions; during one such encounter, Sergeant Gonzalez saw an injured marine lying in the road ahead and ran through enemy fire to carry the man to cover, receiving fragmentation wounds in the rescue; and

WHEREAS, With the column halted by withering fire from a fortified machine-gun bunker, Sergeant Gonzalez proceeded to guide his men to a protective dike; he then moved out onto a road being raked by the gun and destroyed the bunker with hand grenades; later, on February 3, Sergeant Gonzalez was seriously wounded but continued to refuse medical treatment and to lead his men in their attack; and

WHEREAS, During fighting in Hue on February 4, his platoon of some 35 troops was again pinned down by a ferocious barrage; telling his unit to stay behind shelter, Sergeant Gonzalez moved forward aggressively with hand grenades and small antitank rockets, firing numerous rounds against enemy emplacements; and

4664 80th Legislature — Regular Session 68th Day


WHEREAS, Entering a church, where the North Vietnamese were heavily fortified, he succeeded in suppressing virtually all of their fire; before the last of it could be silenced, however, he was mortally wounded; and

WHEREAS, Because he succeeded in destroying so many North Vietnamese positions, Sergeant Gonzalez was credited with saving the lives of the men in his platoon; the following year, in consequence of his extraordinary and selfless action, he was posthumously awarded the Medal of Honor, becoming the only marine in combat during the Tet Offensive to receive that award; and

WHEREAS, For those with whom he served, the heroism displayed by Sergeant Gonzalez was completely in character; "it seemed like he was everywhere all the time," one remembered; "he was always there in the front, never in the back . . . he was always there for us"; and

WHEREAS, Among the awards subsequently conferred on Sergeant Gonzalez were three Purple Hearts, four Presidential Unit Citations, and a Combat Action Ribbon, Good Conduct Medal, National Defense Medal, and Cold War Certificate; in addition, he was the posthumous recipient of two South Vietnamese decorations–the Vietnam Cross of Gallantry with gold palm and star and the Vietnam Service Medal with four bronze stars; in 1996, the U.S. Navy commissioned a new guided missile-destroyer in his honor; and

WHEREAS, Through his unhesitating selflessness and his unfaltering devotion to duty, honor, and his country, Sergeant Alfredo Gonzalez embodied the highest ideals of the armed service, and he most assuredly merits the award of this state's supreme military medal; now, therefore, be it

RESOLVED, That the 80th Legislature of the State of Texas hereby posthumously confer the Texas Legislative Medal of Honor on Sergeant Alfredo "Freddy" Gonzalez in recognition of his heroic service and express to his family its deepest appreciation on behalf of all his fellow Texans; and, be it further

RESOLVED, That an official copy of this resolution be prepared for the family of Sergeant Gonzalez as an expression of highest regard by the Texas House of Representatives and Senate.

HINOJOSA

HCRi121 was read.

On motion of Senator Hinojosa and by unanimous consent, the resolution was considered immediately and was adopted by a viva voce vote.

All Members are deemed to have voted "Yea" on the adoption of the resolution except as follows:

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE ON HOUSE BILL 3249

Senator Brimer called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3249 and moved that the request be granted.

The motion prevailed without objection.

Saturday, May 26, 2007 SENATE JOURNAL 4665


The President asked if there were any motions to instruct the conference committee on HBi3249 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Brimer, Chair; Whitmire, Deuell, Harris, and Hegar.

CONFERENCE COMMITTEE ON HOUSE BILL 3609

Senator Ellis called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3609 and moved that the request be granted.

The motion prevailed without objection.

The President asked if there were any motions to instruct the conference committee on HBi3609 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Ellis, Chair; Brimer, Whitmire, Williams, and Harris.

CONFERENCE COMMITTEE ON HOUSE BILL 1137

Senator Zaffirini called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi1137 and moved that the request be granted.

The motion prevailed without objection.

The President asked if there were any motions to instruct the conference committee on HBi1137 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Zaffirini, Chair; Watson, Eltife, Hegar, and Shapiro.

CONFERENCE COMMITTEE ON HOUSE BILL 12

Senator Estes called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi12 and moved that the request be granted.

The motion prevailed without objection.

The President asked if there were any motions to instruct the conference committee on HBi12 before appointment.

There were no motions offered.

Accordingly, the President announced the appointment of the following conferees on the part of the Senate:iiSenators Estes, Chair; Ogden, Brimer, Hinojosa, and Jackson.

4666 80th Legislature — Regular Session 68th Day


BILL SIGNED

The President announced the signing of the following enrolled bill in the presence of the Senate after the caption had been read:iiSBi792.

AT EASE

The President at 3:40ip.m. announced the Senate would stand At Ease subject to the call of the Chair.

IN LEGISLATIVE SESSION

Senator Eltife at 4:37ip.m. called the Senate to order as In Legislative Session.

CONFERENCE COMMITTEE ON HOUSE BILL 2237

Senator Shapiro called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi2237 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi2237 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Shapiro, Chair; Janek, West, Williams, and VanideiPutte.

CONFERENCE COMMITTEE ON HOUSE BILL 539

Senator West called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi539 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi539 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators West, Chair; Lucio, Nichols, Patrick, and Wentworth.

CONFERENCE COMMITTEE ON HOUSE BILL 2265

Senator Averitt called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi2265 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi2265 before appointment.

There were no motions offered.

Saturday, May 26, 2007 SENATE JOURNAL 4667


Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Averitt, Chair; Lucio, VanideiPutte, Carona, and Nelson.

CONFERENCE COMMITTEE ON HOUSE BILL 2383

Senator Lucio called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi2383 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi2383 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Lucio, Chair; Averitt, Hegar, Shapiro, and VanideiPutte.

CONFERENCE COMMITTEE ON HOUSE BILL 1919

Senator VanideiPutte called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi1919 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi1919 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators VanideiPutte, Chair; Williams, Duncan, Ellis, and Lucio.

CONFERENCE COMMITTEE ON HOUSE BILL 1565

Senator Uresti called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi1565 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi1565 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Uresti, Chair; Averitt, VanideiPutte, Wentworth, and Hegar.

4668 80th Legislature — Regular Session 68th Day


MESSAGE FROM THE HOUSE

HOUSE CHAMBER

Austin, Texas

May 26, 2007

The Honorable President of the Senate

Senate Chamber

Austin, Texas

Mr. President:

I am directed by the House to inform the Senate that the House has taken the following action:

THE HOUSE HAS PASSED THE FOLLOWING MEASURES:

HCR 275, In memory of Herriford "John" Williams of New Waverly.

HCR 279, In memory of Lloyd R. Smith of Collinsville.

HCR 280, Honoring Dr. Charles Florio of Mt. Pleasant on his retirement as president of Northeast Texas Community College.

THE HOUSE HAS GRANTED THE REQUEST OF THE SENATE FOR THE APPOINTMENT OF A CONFERENCE COMMITTEE ON THE FOLLOWING MEASURES:

SB 1846 (non-record vote)

House Conferees:iiTruitt - Chair/Kolkhorst/McClendon/Otto/Villarreal

THE HOUSE HAS ADOPTED THE FOLLOWING CONFERENCE COMMITTEE REPORTS:

SB 548 (76 Yeas, 56 Nays, 2 Present, not voting)

SB 993 (139 Yeas, 0 Nays, 2 Present, not voting)

SB 1123 (141 Yeas, 1 Nays, 2 Present, not voting)

THE HOUSE HAS DISCHARGED ITS CONFEREES AND CONCURRED IN SENATE AMENDMENTS TO THE FOLLOWING MEASURES:

HB 2006 (125 Yeas, 11 Nays, 2 Present, not voting)

Respectfully,

/s/Robert Haney, Chief Clerk

House of Representatives

CONFERENCE COMMITTEE ON HOUSE BILL 3851

Senator Shapiro called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3851 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi3851 before appointment.

Saturday, May 26, 2007 SENATE JOURNAL 4669


There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Shapiro, Chair; Nelson, West, Carona, and Zaffirini.

CONFERENCE COMMITTEE ON HOUSE BILL 3319

Senator Duncan called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3319 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi3319 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Duncan, Chair; Ogden, Whitmire, Williams, and Zaffirini.

CONFERENCE COMMITTEE ON HOUSE BILL 3382

Senator Uresti called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3382 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi3382 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Uresti, Chair; Zaffirini, Williams, Janek, and Shapiro.

CONFERENCE COMMITTEE ON HOUSE BILL 3826

Senator Zaffirini called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3826 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi3826 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Zaffirini, Chair; Averitt, Shapiro, VanideiPutte, and Janek.

4670 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE ON HOUSE BILL 3314

Senator Duncan called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3314 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi3314 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Duncan, Chair; Ogden, Whitmire, Williams, and Zaffirini.

CONFERENCE COMMITTEE ON HOUSE BILL 3200

Senator Whitmire called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3200 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi3200 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Whitmire, Chair; Hinojosa, Seliger, Ogden, and Hegar.

CONFERENCE COMMITTEE ON HOUSE BILL 828

Senator Shapiro called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi828 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi828 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Shapiro, Chair; Nelson, Carona, Shapleigh, and Williams.

HOUSE CONCURRENT RESOLUTION 272

The Presiding Officer, Senator Eltife in Chair, laid before the Senate the following resolution:

WHEREAS, HBi4061 has been adopted by the house of representatives and the senate and is being prepared for enrollment; and

Saturday, May 26, 2007 SENATE JOURNAL 4671


WHEREAS, The bill contains technical and typographical errors that should be corrected; now, therefore, be it

RESOLVED by the 80th Legislature of the State of Texas, That the enrolling clerk of the house of representatives be instructed to make the following correction:

In SECTION 2 of the house engrossment (page 8, line 4), strike "South 68824' East", and substitute "South 68824'25" East".

ESTES

HCR 272 was read.

On motion of Senator Estes and by unanimous consent, the resolution was considered immediately and was adopted by a viva voce vote.

All Members are deemed to have voted "Yea" on the adoption of the resolution except as follows:

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE ON HOUSE BILL 2667

Senator Deuell called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi2667 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi2667 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Deuell, Chair; Nelson, Hinojosa, Lucio, and VanideiPutte.

CONFERENCE COMMITTEE ON HOUSE BILL 3581

Senator Wentworth called from the President's table, for consideration at this time, the request of the House for a conference committee to adjust the differences between the two Houses on HBi3581 and moved that the request be granted.

The motion prevailed without objection.

The Presiding Officer asked if there were any motions to instruct the conference committee on HBi3581 before appointment.

There were no motions offered.

Accordingly, the Presiding Officer announced the appointment of the following conferees on the part of the Senate:iiSenators Wentworth, Chair; Nichols, West, Patrick, and Carona.

4672 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1270 ADOPTED

Senator Van de Putte called from the President's table the Conference Committee Report on HBi1270. The Conference Committee Report was filed with the Senate on Friday, May 18, 2007.

On motion of Senator VanideiPutte, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 155 ADOPTED

Senator Lucio called from the President's table the Conference Committee Report on HBi155. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Lucio, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3066 ADOPTED

Senator Patrick called from the President's table the Conference Committee Report on HBi3066. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Patrick, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2207 ADOPTED

Senator Watson called from the President's table the Conference Committee Report on HBi2207. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Watson, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1562 ADOPTED

Senator Hinojosa called from the President's table the Conference Committee Report on SBi1562. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Hinojosa, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

Saturday, May 26, 2007 SENATE JOURNAL 4673


SENATE BILL 1217 WITH HOUSE AMENDMENTS

Senator Whitmire, on behalf of Senator Gallegos, called SBi1217 from the President's table for consideration of the House amendments to the bill.

The Presiding Officer laid the bill and the House amendments before the Senate.

Floor Amendment No. 1

Amend SB 1217 (House committee printing) as follows:

(1)iiIn existing SECTION 5 of the bill (page 4, line 9), strike "The changes in law" and substitute "Except as otherwise provided by this Act, the changes in law".

(2)iiInsert the following appropriately numbered SECTIONS to the bill and renumber subsequent SECTIONS of the bill as appropriate:

SECTIONi____.iiSection 28.04(d), Alcoholic Beverage Code, is amended to read as follows:

(d)iiThis section does not apply to a change in corporate control:

(1)iibrought about by the death of a shareholder if the shareholder's [his] surviving spouse or descendants are the shareholder's [his] successors in interest; or

(2)iibrought about when legal or beneficial ownership of over 50 percent of the stock of the corporation has been transferred:

(A)iito a person who possesses the qualifications required of other applicants for permits and is currently an officer of the corporation and has been an officer of the corporation ever since the date the original permit was issued; or

(B)iiif the permittee [pays a fee of $500 and] notifies the commission, on completed forms and attachments prescribed by the commission, of the proposed transfer [at least 10 days] prior to the date the transfer is to become effective and the commission does not find that circumstances exist that would be grounds for the denial of a renewal of the permit under Section 11.46 [of this code] and provided the ownership of the corporation immediately after the transfer satisfies the requirements of this code.

SECTIONi____.iiThe change in law made by this Act to Section 28.04, Alcoholic Beverage Code, applies to renewal of a mixed beverage permit that expires on or after the effective date of this Act, regardless of when legal or beneficial ownership of the corporation holding the permit changed.

Amendment No. 1 on Third Reading

Amend SB 1217 on third reading as follows:

(1) Insert the following appropriately numbered SECTION to the bill and renumber subsequent SECTIONS of the bill as appropriate:

SECTION ____. Section 11.40, Alcoholic Beverage Code, is repealed.

The amendments were read.

Senator Whitmire, on behalf of Senator Gallegos, moved to concur in the House amendments to SBi1217.

The motion prevailed by the following vote:iiYeasi29, Naysi1.

Nays:iiPatrick.

Absent-excused:iiGallegos.

4674 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1499 ADOPTED

Senator Zaffirini called from the President's table the Conference Committee Report on SBi1499. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Zaffirini, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

SENATE CONCURRENT RESOLUTION 86

The Presiding Officer laid before the Senate the following resolution:

WHEREAS, SBi222 has been adopted by the house of representatives and the senate and is being prepared for enrollment; and

WHEREAS, The bill contains technical errors that should be corrected; now, therefore, be it

RESOLVED by the 80th Legislature of the State of Texas, That the enrolling clerk of the senate be instructed to correct Senate Bill No. 222 by striking SECTION 6 of the bill and substituting the following:

SECTIONi6.iiThis Act takes effect September 1, 2007.

ELLIS

SCR 86 was read.

On motion of Senator Ellis and by unanimous consent, the resolution was considered immediately and was adopted by a viva voce vote.

All Members are deemed to have voted "Yea" on the adoption of the resolution except as follows:

Absent-excused:iiGallegos.

(Senator Brimer in Chair)

(Senator Eltife in Chair)

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 119 ADOPTED

Senator Ogden called from the President's table the Conference Committee Report on HBi119. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Ogden, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

Saturday, May 26, 2007 SENATE JOURNAL 4675


MESSAGE FROM THE HOUSE

HOUSE CHAMBER

Austin, Texas

May 26, 2007

The Honorable President of the Senate

Senate Chamber

Austin, Texas

Mr. President:

I am directed by the House to inform the Senate that the House has taken the following action:

THE HOUSE HAS ADOPTED THE FOLLOWING CONFERENCE COMMITTEE REPORTS:

HB 126 (139 Yeas, 0 Nays, 2 Present, not voting)

HB 1060 (145 Yeas, 0 Nays, 2 Present, not voting)

HB 1090 (139 Yeas, 4 Nays, 2 Present, not voting)

HB 1457 (141 Yeas, 0 Nays, 2 Present, not voting)

HB 1498 (140 Yeas, 0 Nays, 2 Present, not voting)

HB 1973 (143 Yeas, 1 Nays, 2 Present, not voting)

HB 2096 (142 Yeas, 1 Nays, 2 Present, not voting)

HB 3105 (143 Yeas, 0 Nays, 2 Present, not voting)

HB 3849 (143 Yeas, 0 Nays, 2 Present, not voting)

HB 3928 (136 Yeas, 5 Nays, 3 Present, not voting)

SB 593 (143 Yeas, 0 Nays, 2 Present, not voting)

SB 759 (145 Yeas, 0 Nays, 2 Present, not voting)

Respectfully,

/s/Robert Haney, Chief Clerk

House of Representatives

SENATE RULE 8.01 SUSPENDED

(Procedural Rules)

Senator VanideiPutte moved to suspend Senate Rule 8.01 to take up for consideration HCRi1 at this time.

The motion prevailed.

4676 80th Legislature — Regular Session 68th Day


HOUSE CONCURRENT RESOLUTION 1

The Presiding Officer laid before the Senate the following resolution:

WHEREAS, Military veterans who have served their country honorably and who were promised and have earned health care and benefits from the federal government through the Department of Veterans Affairs are now in need of these benefits; and

WHEREAS, Federal discretionary funding is controlled by the executive branch and the United States Congress through the budget and appropriations process; and

WHEREAS, Direct funding provides the Department of Veterans Affairs with a reliable, predictable, and consistent source of funding to provide timely, efficient, and high-quality health care for our veterans; and

WHEREAS, Currently almost 90 percent of federal health care spending is direct rather than discretionary, and only the funding for health care for active duty military, Native Americans, and veterans is subject to the discretion of the United States Congress; and

WHEREAS, Discretionary funding for health care lags behind both medical inflation and the increased demand for services; for example, the enrollment for veterans' health care increased 134 percent between fiscal years 1996 and 2004 yet funding increased only 34 percent during the same period when adjusted to 1996 dollars; and

WHEREAS, The Department of Veterans Affairs is the largest integrated health care system in the United States and has four critical health care missions: to provide health care to veterans, to educate and train health care personnel, to conduct medical research, and to serve as a backup to the United States Department of Defense and support communities in times of crisis; and

WHEREAS, The Department of Veterans Affairs operates 157 hospitals, with at least one in each of the contiguous states, Puerto Rico, and the District of Columbia; and

WHEREAS, The Department of Veterans Affairs operates more than 850 ambulatory care and community-based outpatient clinics, 132 nursing homes, 42 residential rehabilitation treatment programs, and 88 home care programs; and

WHEREAS, The Department of Veterans Affairs provides a wide range of specialized services to meet the unique needs of veterans, including spinal cord injury and dysfunction care and rehabilitation, blind rehabilitation, traumatic brain injury care, post-traumatic stress disorder treatment, amputee care and prosthetics programs, mental health and substance abuse programs, and long-term care programs; and

WHEREAS, The Department of Veterans Affairs health care system is severely underfunded, and had funding for the department's medical programs been allowed to grow proportionately as the system sought to admit newly eligible veterans following

Saturday, May 26, 2007 SENATE JOURNAL 4677


the eligibility reform legislation in 1996, the current veterans' health care budget would be approximately $10 billion more; and

WHEREAS, In a spirit of bipartisan accommodation, members of the United States Congress should collectively resolve the problem of discretionary funding and jointly fashion an acceptable formula for funding the medical programs of the Department of Veterans Affairs; now, therefore, be it

RESOLVED, That the 80th Legislature of the State of Texas hereby express its profound gratitude for the sacrifices made by veterans, including those suffering from various medical issues resulting from injuries that occurred while serving in the United States Armed Forces at home or abroad; and, be it further

RESOLVED, That the legislature hereby respectfully urge the Congress of the United States to support legislation for veterans' health care budget reform to allow assured funding; and, be it further

RESOLVED, That the Texas secretary of state forward official copies of this resolution to the secretary of veterans affairs, to the president of the United States, to the speaker of the house of representatives and the president of the senate of the United States Congress, and to all the members of the Texas delegation to the congress with the request that this resolution be officially entered in the Congressional Record as a memorial to the Congress of the United States of America.

VANiDEiPUTTE

HCRi1 was read.

On motion of Senator VanideiPutte and by unanimous consent, the resolution was considered immediately and was adopted by a viva voce vote.

All Members are deemed to have voted "Yea" on the adoption of the resolution except as follows:

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE ON

SENATE BILL 964 DISCHARGED

On motion of Senator Shapiro and by unanimous consent, the Senate conferees on SBi964 were discharged.

Question — Shall the Senate concur in the House amendments to SBi964?

Senator Shapiro moved to concur in the House amendments to SBi964.

The motion prevailed by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

SENATE BILL 1985 WITH HOUSE AMENDMENT

Senator Averitt called SBi1985 from the President's table for consideration of the House amendment to the bill.

The Presiding Officer laid the bill and the House amendment before the Senate.

4678 80th Legislature — Regular Session 68th Day


Amendment

Amend SBi1985 by substituting in lieu thereof the following:

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the McLennan County Groundwater Conservation District; providing authority to impose a tax and issue bonds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubtitle H, Title 6, Special District Local Laws Code, is amended by adding Chapter 8821 to read as follows:

CHAPTER 8821. MCLENNAN COUNTY GROUNDWATER

CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.i8821.001.iiDEFINITIONS. In this chapter:

(1)ii"Board" means the district's board of directors.

(2)ii"Director" means a board member.

(3)ii"District" means the McLennan County Groundwater Conservation District.

Sec.i8821.002.iiNATURE OF DISTRICT. The district is a groundwater conservation district in McLennan County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.

Sec.i8821.003.iiCONFIRMATION ELECTION REQUIRED. (a)iiIf the creation of the district is not confirmed at a confirmation election held before September 1, 2012:

(1)iithe district is dissolved on September 1, 2012, except that the district shall:

(A)iipay any debts incurred;

(B)iitransfer to McLennan County any assets that remain after the payment of debts; and

(C)iimaintain the organization of the district until all debts are paid and remaining assets are transferred; and

(2)iithis chapter expires on September 1, 2012.

(b)iiThis section expires on September 1, 2012.

Sec.i8821.004.iiINITIAL DISTRICT TERRITORY. The initial boundaries of the district are coextensive with the boundaries of McLennan County, Texas.

Sec.i8821.005.iiCONSTRUCTION OF CHAPTER. This chapter shall be liberally construed to achieve the legislative intent and purposes of Chapter 36, Water Code. A power granted by Chapter 36, Water Code, or this chapter shall be broadly interpreted to achieve that intent and those purposes.

Sec.i8821.006.iiAPPLICABILITY OF OTHER GROUNDWATER CONSERVATION DISTRICT LAW. Except as otherwise provided by this chapter, Chapter 36, Water Code, applies to the district.

[Sections 8821.007-8821.020 reserved for expansion]

SUBCHAPTER A-1. TEMPORARY PROVISIONS

Sec.i8821.021.iiAPPOINTMENT OF TEMPORARY DIRECTORS. (a)iiNot later than the 45th day after the effective date of this chapter, five temporary directors shall be appointed as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4679


(1)iithe McLennan County Commissioners Court shall appoint one temporary director from each of the four commissioners precincts in the county to represent the precincts in which the temporary directors reside; and

(2)iithe county judge of McLennan County shall appoint one temporary director who resides in the district to represent the district at large.

(b)iiIf there is a vacancy on the temporary board, the authority who appointed the temporary director whose position is vacant shall appoint a person to fill the vacancy.

(c)iiTemporary directors serve until the earlier of:

(1)iithe time the temporary directors become initial directors as provided by Section 8821.024; or

(2)iithe date this chapter expires under Section 8821.003.

Sec.i8821.022.iiORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS. As soon as practicable after all the temporary directors have qualified under Section 36.055, Water Code, a majority of the temporary directors shall convene the organizational meeting of the district at a location within the district agreeable to a majority of the directors. If an agreement on location cannot be reached, the organizational meeting shall be at the McLennan County Courthouse.

Sec.i8821.023.iiCONFIRMATION ELECTION. (a)iiThe temporary directors shall hold an election to confirm the creation of the district.

(b)iiSection 41.001(a), Election Code, does not apply to a confirmation election held as provided by this section.

(c)iiExcept as provided by this section, a confirmation election must be conducted as provided by Sections 36.017(b), (c), and (e)-(i), Water Code, and the Election Code. Section 36.017(d), Water Code, does not apply to the confirmation election.

(d)iiThe ballot for the election must be printed in accordance with the Election Code and provide for voting for or against the proposition: "The creation of the McLennan County Groundwater Conservation District."

(e)iiIf a majority of the votes cast at the election are not in favor of the creation of the district, the temporary directors may call and hold a subsequent confirmation election. The subsequent election may not be held before the first anniversary of the date on which the previous election was held.

(f)iiThe district may contract with the elections administrator of McLennan County to conduct an election under this section.

Sec.i8821.024.iiINITIAL DIRECTORS. (a)iiIf creation of the district is confirmed at an election held under Section 8821.023, the temporary directors become the initial directors and serve for the terms provided by Subsection (b).

(b)iiThe initial directors representing commissioners precincts 2 and 4 serve a term expiring on December 31 following the expiration of two years after the date of the confirmation election, and the initial directors representing commissioners precincts 1 and 3 and the at-large director serve a term expiring on December 31 following the expiration of four years after the date of the confirmation election.

4680 80th Legislature — Regular Session 68th Day


Sec.i8821.025.iiEXPIRATION OF SUBCHAPTER. This subchapter expires September 1, 2012.

[Sectionsi8821.026-8821.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.i8821.051.iiGOVERNING BODY; TERMS. (a)iiThe district is governed by a board of five directors.

(b)iiDirectors serve staggered four-year terms, with two or three directors' terms expiring December 31 of each even-numbered year.

(c)iiA director may not serve more than three consecutive terms.

Sec.i8821.052.iiAPPOINTMENT OF DIRECTORS. (a)iiThe McLennan County Commissioners Court shall appoint one director from each of the four commissioners precincts and one director to represent the district at large.

(b)iiExcept as provided by Subsection (c), to be eligible to serve as director at large, a person must be a registered voter in the district. To serve as director from a county commissioners precinct, a person must be a registered voter of that precinct.

(c)iiWhen the boundaries of the county commissioners precincts are redrawn after each federal decennial census to reflect population changes, a director in office on the effective date of the change, or a director appointed before the effective date of the change whose term of office begins on or after the effective date of the change, shall serve in the precinct to which appointed even though the change in boundaries places the person's residence outside the precinct for which the person was appointed.

[Sections 8821.053-8821.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.i8821.101.iiGROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. Except as provided by this chapter, the district has the powers and duties provided by the general law of this state, including Chapter 36, Water Code, and Section 59, Article XVI, Texas Constitution, applicable to groundwater conservation districts.

Sec.i8821.102.iiREGISTRATION AND REPORTING REQUIREMENTS FOR CERTAIN EXEMPT WELLS. The district may adopt rules that require the owner or operator of a well or class of wells exempt from permitting under Section 36.117, Water Code, to register the well with the district and, if the well is not exempt under Section 36.117(b)(1), Water Code, to report groundwater withdrawals from the well using reasonable and appropriate reporting methods and frequency.

Sec.i8821.103.iiWELL SPACING RULES; EXEMPTIONS. (a)iiExcept as provided by Subsection (b), the district shall exempt from the well spacing requirements adopted by the district any well that is completed on or before the effective date of those requirements.

(b)iiThe district may provide by rule that a well may lose its exemption under this section if the well is modified in a manner that substantially increases the capacity of the well after the effective date of the well spacing requirements adopted by the district.

Saturday, May 26, 2007 SENATE JOURNAL 4681


(c)iiExcept as provided by this section, the district may require any well or class of wells exempt from permitting under Chapter 36, Water Code, to comply with the well spacing requirements adopted by the district. The district shall apply well spacing requirements uniformly to any well or class of wells based on the size or capacity of the well and without regard to the type of use of the groundwater produced by the well.

Sec.i8821.104.iiADOPTION OF RULES AND ISSUANCE OF PERMITS. Before the district adopts a management plan, the district may adopt rules and issue permits.

Sec.i8821.105.iiCONTRACTS WITH OTHER GOVERNMENTAL ENTITIES. The district and another governmental entity, including a river authority located in the district, may contract for the performance by that entity of a district function.

Sec.i8821.106.iiNO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain.

Sec.i8821.107.iiDISTRICT TERRITORY REQUIREMENTS; DISSOLUTION OF DISTRICT. (a)iiOn September 1, 2011, the district boundaries must include at least one county adjacent to McLennan County.

(b)iiAs soon as practicable after September 1, 2011, the Texas Commission on Environmental Quality shall determine whether the district complies with Subsection (a).

(c)iiIf the Texas Commission on Environmental Quality determines that the district does not comply with Subsection (a), the commission shall dissolve the district in accordance with Sections 36.304, 36.305, 36.307, 36.308, 36.309, and 36.310, Water Code, regardless of whether the district meets the criteria for dissolution under Section 36.304(a), Water Code.

(d)iiThis section expires September 1, 2013.

[Sections 8821.108-8821.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.i8821.151.iiREVENUE. To pay the maintenance and operating costs of the district and to pay any bonds or notes issued by the district, the district may:

(1)iiassess fees for services or for water withdrawn from nonexempt wells; or

(2)iisolicit and accept grants from any private or public source.

Sec.i8821.152.iiFEES. The district may impose a user fee to pay for the creation and operation of the district, including permit hearings. The district may not impose a fee for agricultural use that is more than 20 percent of the rate for municipal use.

[Sections 8821.153-8821.200 reserved for expansion]

SUBCHAPTER E. DISSOLUTION

Sec.i8821.201.iiELECTION FOR DISSOLUTION. (a)iiIf the district has no outstanding bond or other long-term indebtedness, the district may be dissolved by a favorable vote of a majority of the registered voters of the district at an election held for that purpose.

(b)iiThe board shall hold a dissolution election if the board receives a petition for dissolution signed by at least 50 percent of the registered voters in the district as computed by using the list of registered voters for McLennan County.

(c)iiIf the district is dissolved under this section, the board shall:

4682 80th Legislature — Regular Session 68th Day


(1)iinotify the Texas Commission on Environmental Quality and the secretary of state of the dissolution; and

(2)iitransfer title to any assets of the district to McLennan County.

SECTIONi2.ii(a)iiThe legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code.

(b)iiThe governor has submitted the notice and Act to the Texas Commission on Environmental Quality.

(c)iiThe Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time.

(d)iiAll requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished.

SECTIONi3.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

The amendment was read.

Senator Averitt moved to concur in the House amendment to SBi1985.

The motion prevailed by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3613 ADOPTED

Senator Deuell called from the President's table the Conference Committee Report on HBi3613. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Deuell, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3693 ADOPTED

Senator Fraser called from the President's table the Conference Committee Report on HBi3693. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Fraser, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

Saturday, May 26, 2007 SENATE JOURNAL 4683


SENATE RESOLUTION 1172

Senator Shapiro offered the following resolution:

BE IT RESOLVED by the Senate of the State of Texas, 80th Legislature, Regular Session, 2007, That Senate Rule 12.03 be suspended in part as provided by Senate Rule 12.08 to enable the conference committee appointed to resolve the differences on SBi1031 (public school accountability and the administration of certain assessment instruments in public schools; providing a criminal penalty) to consider and take action on the following matters:

(1)iiSenate Rule 12.03(3) is suspended to permit the committee to change the text of amended Subsection (c), Section 39.023, Education Code, to add the following language:

If a student retakes an end-of-course assessment instrument for a course listed in this subsection, as provided by Section 39.025, a school district is not required to use the student's performance on the subsequent administration or administrations of the assessment instrument to determine the student's final grade for the course.

Explanation: The change is necessary to clarify that a school district is not required to use a student's performance on the subsequent administration or administrations of end-of-course assessment instruments to determine a student's final grade for a course.

(2)iiSenate Rule 12.03(4) is suspended to permit the committee to add new Subsections (b-1) and (b-2) to amended Section 39.025, Education Code, to read as follows:

(b-1)iiA school district shall provide each student who fails to achieve a score of at least 70 on an end-of-course assessment instrument with accelerated instruction in the subject assessed by the assessment instrument.

(b-2)iiIf a school district determines that a student, on completion of grade 11, is unlikely to achieve the cumulative score requirements for one or more subjects prescribed by Subsection (a) for receiving a high school diploma, the district shall require the student to enroll in a corresponding content-area college preparatory course for which an end-of-course assessment instrument has been adopted, if available. A student who enrolls in a college preparatory course described by this subsection shall be administered an end-of-course assessment instrument for the course, with the end-of-course assessment instrument scored on a scale of 40. A student may use the student's score on the end-of-course assessment instrument for the college preparatory course towards satisfying the cumulative score requirements prescribed by Subsection (a).

Explanation: The change is necessary to require a school district to provide accelerated instruction to a student who fails to score at least 70 on an end-of-course assessment instrument and to require certain students who appear unlikely to achieve the cumulative score required for graduation to enroll in an appropriate college preparatory course.

(3)iiSenate Rule 12.04(4) is suspended to permit the committee to add the following language in the SECTION of the bill that is renumbered in the conference committee report as SECTION 11 to read as follows:

4684 80th Legislature — Regular Session 68th Day


Sec.i39.0262.iiADMINISTRATION OF LOCAL ASSESSMENT INSTRUMENTS IN CERTAIN SUBJECT AREAS. (a)iiIn a subject area for which assessment instruments are administered under Section 39.023, a school district may not administer local assessment instruments to any student on more than 10 percent of the instructional days in any school year.

(b)iiThe prohibition prescribed by this section does not apply to the administration of a college preparation assessment instrument, an advanced placement test, an international baccalaureate examination, or an assessment instrument administered under Section 39.023.

Explanation: The change is necessary to prohibit a school district from administering certain assessment instruments to a student on more than 10 percent of the instructional days in a school year.

SR 1172 was read and was adopted without objection.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1031 ADOPTED

Senator Shapiro called from the President's table the Conference Committee Report on SBi1031. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Shapiro, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

SENATE RESOLUTION 1174

Senator Carona offered the following resolution:

BE IT RESOLVED by the Senate of the State of Texas, 80th Legislature, Regular Session, 2007, That Senate Rule 12.03 be suspended in part as provided by Senate Rule 12.08 to enable the conference committee appointed to resolve the differences on SBi1154 (registration and regulation of metal recycling entities; providing penalties) to consider and take action on the following matter:

Senate Rules 12.03(3) and (4) are suspended to permit the committee to change the text of SECTION 2 of the bill by adding new Subdivision (3), Section 1956.002, Occupations Code, to read as follows:

(3)iithe transport or hauling of recyclable materials to or from the metal recycling entity.

Explanation: The addition of the subdivision is necessary to provide that the chapter does not apply to the transport or hauling of recyclable materials to or from the metal recycling entity.

Senate Rule 12.03(4) is suspended to permit the committee to change the text of SECTION 2 of the bill by adding new Subsections (b-1), (c), (d), and (e), Section 1956.003, Occupations Code, to read as follows:

(b-1)iiA municipality or political subdivision of this state, other than a county, may not increase the local license or permit fee imposed on a metal recycling facility to an amount that exceeds 25 percent of the fee charged by the municipality or political subdivision on January 1, 2007. This subsection expires January 1, 2010.

Saturday, May 26, 2007 SENATE JOURNAL 4685


(c)iiA county, municipality, or political subdivision of this state that issues a license or permit to a business as authorized under Subsection (b) shall submit to the department in the manner required by the department information on each business that is issued a license or permit.

(d)iiA municipality or political subdivision of this state, other than a county, may not increase the local license or permit fee imposed on a metal recycling facility unless the increase is approved by the local governing body. A request for an increase in the local license or permit fee must be based on the costs associated with law enforcement and administration of the licensing or permitting program. The municipality or political subdivision must submit a report to the department on the law enforcement and administrative costs associated with the fee increase.

(e)iiA county may increase the local license or permit fee imposed on a metal recycling facility one additional time before the second anniversary of the date of the initial fee increase. The fee increase must be based on the average cost charged by municipalities statewide.

Explanation: The addition of the provisions to the bill is necessary to authorize and regulate local metal recycling entity licenses and permits.

Senate Rule 12.03(4) is suspended to permit the committee to change the text of SECTION 2 of the bill by adding new Subchapters A-1 and A-2, Chapter 1956, Occupations Code, to read as follows:

SUBCHAPTER A-1. POWERS AND DUTIES

Sec.i1956.011.iiADMINISTRATION OF CHAPTER. The department shall administer this chapter.

Sec.i1956.012.iiDEPARTMENT STAFF. The department may employ administrative and clerical staff as necessary to carry out this chapter.

Sec.i1956.013.iiRULES. The commission may adopt rules to administer this chapter, including rules:

(1)iiestablishing minimum requirements for registration under this chapter; and

(2)iiadopting forms required by this chapter.

Sec.i1956.014.iiFEES; REPORTS. (a) The commission by rule shall prescribe fees in reasonable amounts sufficient to cover the costs of administering this chapter, including fees for:

(1)iian initial application for a certificate of registration;

(2)iiissuance of a certificate of registration;

(3)iiissuance of a renewal certificate of registration; and

(4)iiissuance of a duplicate certificate of registration or duplicate renewal certificate of registration.

(b)iiThe commission may not impose a fee for issuance of a certificate of registration that exceeds $250 annually. The department shall report annually to the legislature, not later than December 1, any costs associated with administering this chapter that are not covered by the fees assessed under this chapter.

(c)iiThe department annually shall submit to both houses of the legislature a report on the number of metal recycling entities who have complied with the registration requirements under this chapter and the total number of metal recycling

4686 80th Legislature — Regular Session 68th Day


entities identified statewide. The report must include the information on metal recycling entities submitted to the department by municipalities, counties, and other political subdivisions of this state.

(d)iiNot later than March 1, 2008, the department shall submit to both houses of the legislature a report on the actual costs incurred by the department in administering this chapter. This subsection expires January 1, 2009.

Sec.i1956.015.iiSTATEWIDE ELECTRONIC REPORTING SYSTEM. (a) The department shall establish a statewide electronic reporting system to track the sales of regulated metal reported to the department under Section 1956.036.

(b)iiThe department shall post a summary of the reports provided to the department under Section 1956.036 on the department's Internet website. The summary must include by county or region the frequency with which a person presents regulated materials for sale to a metal recycling entity. The summary may not identify any person to which the metal recycling entity sells the regulated materials.

(c)iiSubsection (b) does not apply to regulated material sold by a utility company, municipality, manufacturer, railroad, cemetery, cable or satellite entity, or other business entity that routinely has access to regulated metal.

(d)iiThe department shall maintain the confidentiality of information provided under this section that relates to the financial condition or business affairs of a metal recycling entity or that is otherwise commercially sensitive. The confidential information is not subject to disclosure under Chapter 552, Government Code.

[Sections 1956.016-1956.020 reserved for expansion]

SUBCHAPTER A-2. CERTIFICATE OF REGISTRATION

Sec.i1956.021.iiREGISTRATION REQUIRED. A person may not act as a metal recycling entity or represent to the public that the person is a metal recycling entity unless the person is registered under this chapter.

Sec.i1956.022.iiISSUANCE OF CERTIFICATE; QUALIFICATIONS. (a)iiThe department shall issue a certificate of registration to an applicant who:

(1)iiapplies and pays a registration fee; and

(2)iipresents any relevant evidence relating to the applicant's qualifications as required by commission rule.

(b)iiThe commission by rule may establish qualifications for the holder of a certificate of registration under this chapter, which may include accepting copies of a license or permit issued by a county or municipality authorizing a metal recycling entity to conduct business in that county or municipality.

Sec.i1956.023.iiTERM OF CERTIFICATE. (a)iiA certificate of registration is valid for two years after the date of issuance.

(b)iiThe department shall adopt a system under which certificates of registration expire and are renewed on various dates.

(c)iiNot later than the 45th day before the date a person's certificate of registration is scheduled to expire, the department shall send written notice of the impending expiration to the person at the person's last known address according to the records of the department.

(d)iiA person whose certificate of registration has expired may not make a representation for which a certificate of registration is required under Section 1956.021 or perform collections services until the certificate has been renewed.

Saturday, May 26, 2007 SENATE JOURNAL 4687


Sec.i1956.024.iiRENEWAL OF CERTIFICATE. (a)ii To renew a certificate of registration, a person must submit an application for renewal in the manner prescribed by the department.

(b)iiA person who is otherwise eligible to renew a certificate of registration may renew an unexpired certificate by paying the required renewal fee to the department before the expiration date of the certificate.

(c)iiA person whose certificate of registration has been expired for 90 days or less may renew the certificate by paying to the department a renewal fee that is equal to 1-1/2 times the normally required renewal fee.

(d)iiA person whose certificate of registration has been expired for more than 90 days but less than one year may renew the certificate by paying to the department a renewal fee that is equal to two times the normally required renewal fee.

(e)iiA person whose certificate of registration has been expired for one year or more may not renew the certificate. The person may obtain a new certificate of registration by complying with the requirements and procedures, including the examination requirements, for an original certificate.

Explanation: The addition of the subchapters is necessary to authorize the Texas Department of Public Safety and Public Safety Commission to administer the chapter, employ staff, adopt rules, prescribe fees, issue reports, establish a statewide electronic reporting system, and register metal recycling entities.

Senate Rule 12.03(4) is suspended to permit the committee to add the following:

SECTIONi4.iiChapter 1956, Occupations Code, is amended by adding Subchapters D and E to read as follows:

SUBCHAPTER D. DISCIPLINARY PROCEDURES

Sec.i1956.151.iiDENIAL OF CERTIFICATE; DISCIPLINARY ACTION. The department shall deny an application for a certificate of registration, suspend or revoke a certificate of registration, or reprimand a person who is registered under this chapter if the person:

(1)iiobtains a certificate of registration by means of fraud, misrepresentation, or concealment of a material fact;

(2)iisells, barters, or offers to sell or barter a certificate of registration;

(3)iiviolates a rule adopted under this chapter; or

(4)iiviolates Section 1956.021.

Sec.i1956.152.iiINVESTIGATION. Within the limits of available resources, the department may investigate:

(1)iia person who engages in a practice that violates this chapter; and

(2)iia complaint filed with the department against a person registered under this chapter.

Sec.i1956.153.iiHEARING. (a) A person whose application for a certificate of registration is denied, whose certificate of registration is suspended or revoked, or who is reprimanded is entitled to a hearing before the department if the person submits to the department a written request for the hearing.

(b)iiA hearing is governed by department rules for a contested hearing and by Chapter 2001, Government Code.

4688 80th Legislature — Regular Session 68th Day


[Sections 1956.154-1956.200 reserved for expansion]

SUBCHAPTER E. OTHER PENALTIES AND ENFORCEMENT PROVISIONS

Sec.i1956.201.iiENFORCEMENT PROCEEDINGS; INJUNCTION. (a) The department, the attorney general, or the district, county, or city attorney for the county or municipality in which an alleged violation of this chapter occurs may, on receipt of a verified complaint, bring an appropriate administrative or judicial proceeding to enforce this chapter or a rule adopted under this chapter.

(b)iiThe attorney general or an attorney representing the state may initiate an action for an injunction to prohibit a person from violating this chapter or a rule adopted under this chapter.

Sec.i1956.202.iiCIVIL PENALTY. (a) A person who violates this chapter or a rule adopted under this chapter is liable to this state for a civil penalty of not more than $1,000 for each violation.

(b)iiThe amount of the penalty shall be based on:

(1)iithe seriousness of the violation;

(2)iithe history of previous violations;

(3)iithe amount necessary to deter a future violation; and

(4)iiany other matter that justice may require.

(c)iiThe attorney general may sue to collect a civil penalty under this section. In the suit the attorney general may recover, on behalf of the state, the reasonable expenses incurred in obtaining the penalty, including investigation and court costs, reasonable attorney's fees, witness fees, and other expenses.

Sec.i1956.203.iiCRIMINAL PENALTY FOR CERTAIN SOLICITATION. (a) A person commits an offense if the person solicits the purchase of regulated material at a location other than a business location at which the material is produced as a by-product in the ordinary course of that business.

(b)iiAn offense under this section is a Class B misdemeanor.

Explanation: The addition of the subchapters is necessary to authorize the Texas Department of Public Safety to take disciplinary action and to conduct an investigation and to provide for the imposition of penalties and enforcement provisions.

Senate Rule 12.03(4) is suspended to permit the committee to add the following:

SECTIONi5.iiSubdivision (1), Section 1956.101, Occupations Code, is repealed.

Explanation: The repeal of a definition applicable to a subchapter is necessary to conform to the addition of a definition applicable to the entire subchapter.

Senate Rule 12.03(4) is suspended to permit the committee to add the following:

SECTIONi6.ii(a) Not later than January 1, 2008, the Public Safety Commission shall adopt the rules necessary to implement the changes in law made by this Act to Chapter 1956, Occupations Code.

(b)iiNot later than April 1, 2008, the Department of Public Safety of the State of Texas shall establish the statewide reporting system to track the sales of regulated metal as required under Chapter 1956, Occupations Code, as amended by this Act.

Explanation: The addition of SECTION 6 is necessary to reflect the addition of SECTION 5 to the conference committee report.

Senate Rule 12.03(4) is suspended to permit the committee to add the following:

Saturday, May 26, 2007 SENATE JOURNAL 4689


SECTIONi7.iiNotwithstanding Section 1956.021, Occupations Code, as added by this Act, a person is not required to hold a certificate of registration as a metal recycling entity under Chapter 1956, Occupations Code, as amended by this Act, before April 1, 2008.

Explanation: The addition is necessary to reflect the addition of the registration provisions to the conference committee report.

SR 1174 was read and was adopted without objection.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1154 ADOPTED

Senator Carona called from the President's table the Conference Committee Report on SBi1154. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Carona, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2542 ADOPTED

Senator Estes called from the President's table the Conference Committee Report on HBi2542. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Estes, the Conference Committee Report was adopted by the following vote:iiYeasi29, Naysi1.

Nays:iiPatrick.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2819 ADOPTED

Senator Jackson called from the President's table the Conference Committee Report on HBi2819. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Jackson, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2034 ADOPTED

Senator Shapiro called from the President's table the Conference Committee Report on HBi2034. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Shapiro, the Conference Committee Report was adopted by the following vote:iiYeasi29, Naysi1.

Nays:iiPatrick.

Absent-excused:iiGallegos.

4690 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 4139 ADOPTED

Senator Deuell called from the President's table the Conference Committee Report on HBi4139. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Deuell, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2823 ADOPTED

Senator Patrick called from the President's table the Conference Committee Report on HBi2823. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Patrick, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 899 ADOPTED

Senator Deuell called from the President's table the Conference Committee Report on HBi899. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Deuell, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

MESSAGE FROM THE HOUSE

HOUSE CHAMBER

Austin, Texas

May 26, 2007

The Honorable President of the Senate

Senate Chamber

Austin, Texas

Mr. President:

I am directed by the House to inform the Senate that the House has taken the following action:

THE HOUSE HAS ADOPTED THE FOLLOWING CONFERENCE COMMITTEE REPORTS:

SB 36 (142 Yeas, 1 Nays, 2 Present, not voting)

SB 1031 (141 Yeas, 0 Nays, 2 Present, not voting)

Saturday, May 26, 2007 SENATE JOURNAL 4691


SB 1383 (136 Yeas, 0 Nays, 2 Present, not voting)

SB 1714 (143 Yeas, 0 Nays, 2 Present, not voting)

THE HOUSE HAS DISCHARGED ITS CONFEREES AND CONCURRED IN SENATE AMENDMENTS TO THE FOLLOWING MEASURES:

HB 463 (140 Yeas, 1 Nays, 2 Present, not voting)

HB 2120 (143 Yeas, 0 Nays, 2 Present, not voting)

HB 3694 (143 Yeas, 0 Nays, 2 Present, not voting)

THE HOUSE HAS DISCHARGED ITS CONFEREES AND APPOINTED NEW CONFEREES ON THE FOLLOWING MEASURES:

SB 1846 (non-record vote)

House Conferees:iiTruitt - Chair/Keffer, Jim/Kolkhorst/McClendon/Otto

Respectfully,

/s/Robert Haney, Chief Clerk

House of Representatives

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1638 ADOPTED

Senator Jackson called from the President's table the Conference Committee Report on HBi1638. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Jackson, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1879 ADOPTED

Senator Williams called from the President's table the Conference Committee Report on SBi1879. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Williams, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1266 ADOPTED

Senator Brimer called from the President's table the Conference Committee Report on SBi1266. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Brimer, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

4692 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

SENATE BILL 960 ADOPTED

Senator Shapleigh called from the President's table the Conference Committee Report on SBi960. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Shapleigh, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

SENATE RULE 8.01 SUSPENDED

(Procedural Rules)

Senator VanideiPutte moved to suspend Senate Rule 8.01 to take up for consideration HCRi198 at this time.

The motion prevailed.

HOUSE CONCURRENT RESOLUTION 198

The Presiding Officer, Senator Eltife in Chair, laid before the Senate the following resolution:

WHEREAS, The Texas Residential Construction Commission (TRCC) was created in 2003 to provide homeowners and residential builders with the opportunity to resolve their differences through a state-sponsored inspection and dispute resolution process by the enactment of the Texas Residential Construction Commission Act (Title 16, Property Code); and

WHEREAS, The mission of the TRCC is to promote quality construction in Texas by registering builders and residential construction projects, providing information and education to homeowners and industry members, and reviewing consumer complaints regarding alleged postconstruction defects; as part of its governing philosophy, the TRCC is committed to addressing the needs of consumers and industry members in a fair and efficient manner, promoting collaboration between consumers and builders when disputes arise; and

WHEREAS, The San Antonio Housing Authority (SAHA) receives funds from the U.S. Department of Housing and Urban Development to build and maintain affordable housing in San Antonio communities; one of SAHA's principal goals is to increase home ownership in the city for first-time homebuyers and low-income residents; and

WHEREAS, In 2000, SAHA constructed the 159 single-family dwellings that comprise the Mirasol Homes project to give low-income families the opportunity to own their own homes through a lease-to-purchase program; to date, more than 80 of the homes have been purchased, and approximately 20 additional homes are occupied by families under a lease-to-purchase agreement; and

WHEREAS, In recent months, several owners and tenants of Mirasol Homes properties have contacted SAHA to voice their concerns about the structural viability of their dwellings, including problems that may be the result of postconstruction defects; some of those residents have asked the housing authority to make repairs on their homes; and

Saturday, May 26, 2007 SENATE JOURNAL 4693


WHEREAS, TRCC is uniquely positioned to draw on its expertise within the residential construction industry and coordinate with SAHA as the housing authority addresses the concerns of the Mirasol residents; working together, TRCC and SAHA could develop and implement a plan for the inspection of potentially defective dwellings, the repair and reinspection of any defects found, and the establishment of procedures to provide mediation between SAHA and the Mirasol homeowners and tenants; and

WHEREAS, As a political subdivision of the state, however, SAHA is exempt from TRCC oversight under provisions of the Property Code; additionally, because the Mirasol properties were constructed and sold before TRCC was created, the commission lacks the authority to assist SAHA with the Mirasol Homes construction disputes; now, therefore, be it

RESOLVED, That the 80th Legislature of the State of Texas hereby respectfully request the Texas Residential Construction Commission to work in cooperation with the San Antonio Housing Authority to create and implement an inspection and mediation plan that would address the concerns of the homeowners and tenants of certain Mirasol Homes properties; and, be it further

RESOLVED, That the secretary of state forward an official copy of this resolution to the chair and the executive director of the Texas Residential Construction Commission, to the chair and the president and chief executive officer of the San Antonio Housing Authority, and to the mayor of the City of San Antonio.

VANiDEiPUTTE

HCRi198 was read.

On motion of Senator VanideiPutte and by unanimous consent, the resolution was considered immediately and was adopted by a viva voce vote.

All Members are deemed to have voted "Yea" on the adoption of the resolution except as follows:

Absent-excused:iiGallegos.

MESSAGE FROM THE HOUSE

HOUSE CHAMBER

Austin, Texas

May 26, 2007

The Honorable President of the Senate

Senate Chamber

Austin, Texas

Mr. President:

I am directed by the House to inform the Senate that the House has taken the following action:

THE HOUSE HAS CONCURRED IN SENATE AMENDMENTS TO THE FOLLOWING MEASURES:

HB 3678 (107 Yeas, 28 Nays, 2 Present, not voting)

4694 80th Legislature — Regular Session 68th Day


THE HOUSE HAS ADOPTED THE FOLLOWING CONFERENCE COMMITTEE REPORTS:

HB 2458 (137 Yeas, 2 Nays, 2 Present, not voting)

Respectfully,

/s/Robert Haney, Chief Clerk

House of Representatives

SENATE RESOLUTION 1177

Senator Carona offered the following resolution:

BE IT RESOLVED by the Senate of the State of Texas, 80th Legislature, Regular Session, 2007, That Senate Rule 12.03 be suspended in part as provided by Senate Rule 12.08 to enable the conference committee appointed to resolve the differences on SBi344 (additional exit conference required following inspection, survey, or investigation of, and temporary change of ownership licenses for, certain facilities) to consider and take action on the following matter:

Senate Rules 12.03(3) and (4) are suspended to permit the conference committee to add the following:

SECTIONi2.iiSection 242.0336, Health and Safety Code, is amended by amending Subsections (a) and (c) through (g) and adding Subsections (b-1) through (b-5), (c-1), and (d-1) to read as follows:

(a)iiFor purposes of this section, a temporary change of ownership license is a temporary 90-day license issued to an applicant who proposes to become the new operator of an institution existing on the date the application is filed.

(b-1)iiExcept as provided by Subsection (b-2), the department may not issue a temporary change of ownership license before the 31st day after the date the department has received both:

(1)iithe application for the license; and

(2)iinotification, in writing, of the intent of the institution's existing license holder to transfer operation of the institution to the applicant beginning on a date specified by the applicant.

(b-2)iiNotwithstanding Section 242.0335, the department shall establish criteria under which the department may waive the 30-day requirement or the notification requirement of Subsection (b-1). The criteria may include the occurrence of forcible entry and detainer, death, or divorce or other events that affect the ownership of the institution by the existing license holder.

(b-3)iiAfter receipt of an application or written notification described by Subsection (b-1), the department may place a hold on payments to the existing license holder in an amount not to exceed the average of the monthly vendor payments paid to the facility, as determined by the department. The department shall release funds to the previous license holder not later than the 120th day after the date on which the final reporting requirements are met and any resulting informal reviews or formal appeals are resolved. The department may reduce the amount of funds released to the previous license holder by the amount owed to the department or the Health and Human Services Commission under the previous license holder's Medicaid contract or license.

Saturday, May 26, 2007 SENATE JOURNAL 4695


(b-4)iiThe executive commissioner of the Health and Human Services Commission shall adopt rules for the department that define a change of ownership. In adopting the rules, the executive commissioner shall consider:

(1)iithe proportion of ownership interest that is being transferred to another person;

(2)iithe addition or removal of a stockholder, partner, owner, or other controlling person;

(3)iithe reorganization of the license holder into a different type of business entity; and

(4)iithe death or incapacity of a stockholder, partner, or owner.

(b-5)iiThe executive commissioner may adopt rules for the department that require a license holder to notify the department of any change, including a change that is not a change of ownership, as that term is defined by rules adopted under Subsection (b-4). Nothing in this section prevents the department from acting under Section 242.061 or any other provision of this chapter.

(c)iiThe department shall issue or deny a temporary change of ownership license not later than the 31st [30th] day after the date of receipt of the completed application. The effective date of a temporary change of ownership license issued under this section is the date requested in the application unless:

(1)iithe department does not receive the application and written notification described by Subsection (b-1) at least 30 days before that date; and

(2)iino waiver under Subsection (b-2) applies.

(c-1)iiIf the department does not receive the application and written notification required by Subsection (b-1) at least 30 days before the effective date requested in the application and Subsection (b-2) does not apply, the effective date of the temporary change of ownership license is the 31st day after the date the department receives both the application and the notification.

(d)iiExcept as provided in Subsection (d-1), after [After] the department issues a temporary change of ownership license to the applicant, the department shall conduct an inspection or survey of the nursing facility under Section 242.043 as soon as reasonably possible. During the period between the issuance of the temporary license and the inspection or survey of the nursing facility or desk review under Subsection (d-1), the department may not place a hold on vendor payments to the temporary license holder.

(d-1)iiThe department shall establish criteria under which a desk review of the facility's compliance with applicable requirements may be substituted for the on-site inspection or survey under Subsection (d).

(e)iiAfter conducting an inspection or survey under Subsection (d) or a desk review under Subsection (d-1), the department shall issue a license under Section 242.033 to the temporary change of ownership license holder if the nursing facility passes the desk review, inspection, or survey and the applicant meets the requirements of Section 242.033. If the nursing facility fails to pass the desk review, inspection, or survey or the applicant fails to meet the requirements of Section 242.033, the department may:

(1)iiplace a hold on vendor payments to the temporary change of ownership license holder; and

4696 80th Legislature — Regular Session 68th Day


(2)iitake any other action authorized under this chapter.

(f)iiIf the applicant meets the requirements of Section 242.033 and the nursing facility passes a desk review, [an] initial inspection, or [a] subsequent inspection before the temporary change of ownership license expires, the license issued under Section 242.033 is considered effective on the date the department determines under Subsection (c) or (c-1) [requested in the application for a temporary change of ownership].

(g)iiA temporary change of ownership license issued under Subsection (b) expires on the 90th [91st] day after the effective date established under Subsection (c) or (c-1) [date the license was issued].

Explanation: The addition of the SECTION to the bill is necessary to address a temporary change of ownership licenses for certain facilities.

Senate Rules 12.03(3) and (4) are suspended to permit the committee to add the following:

SECTIONi7.ii(a) As soon as practicable after the effective date of this Act, the executive commissioner of the Health and Human Services Commission shall adopt the rules required by Section 242.0336, Health and Safety Code, as amended by this Act.

(b)iiThe changes in law made by this Act to Section 242.0336, Health and Safety Code, apply only to a temporary change of ownership license application received by the Department of Aging and Disability Services on or after September 1, 2007. An application received by the department before September 1, 2007, is governed by the law in effect at the time the application is received, and the former law is continued in effect for that purpose.

Explanation: The addition of this provision is necessary to properly implement the addition of SECTION 2 to the conference committee report.

SR 1177 was read and was adopted without objection.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 344 ADOPTED

Senator Carona called from the President's table the Conference Committee Report on SBi344. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Carona, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

SENATE RESOLUTION 1185

Senator Wentworth offered the following resolution:

BE IT RESOLVED by the Senate of the State of Texas, 80th Legislature, Regular Session, 2007, That Senate Rules 12.03(3) and (4) be suspended as provided by Senate Rule 12.08 to enable the conference committee appointed to resolved the differences on HBi1251 (the authority of a public agency, political subdivision,

Saturday, May 26, 2007 SENATE JOURNAL 4697


county, or municipality to enforce a solid waste collection and transportation services franchise or contract) to consider and take action on the addition to Section 1 of the bill of a new Subsection (h), Section 364.034, Health and Safety Code, to read:

(h)i This section does not apply to a private entity that contracts to provide temporary solid waste disposal services to a construction project.

Explanation: The addition of the above Subsection (h) is necessary to prevent requirements concerning the use of solid waste collection and transportation services from being applied to those who may use temporary services for a construction project.

SR 1185 was read and was adopted without objection.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1251 ADOPTED

Senator Wentworth called from the President's table the Conference Committee Report on HBi1251. The Conference Committee Report was filed with the Senate on Friday, May 25, 2007.

On motion of Senator Wentworth, the Conference Committee Report was adopted by the following vote:iiYeasi30, Naysi0.

Absent-excused:iiGallegos.

SENATE RESOLUTION 1175

Senator Carona offered the following resolution:

BE IT RESOLVED by the Senate of the State of Texas, 80th Legislature, Regular Session, 2007, That Senate Rule 12.03 be suspended in part as provided by Senate Rule 12.08 to enable the conference committee appointed to resolve the differences on HBi1623, relating to certain offenses and fees imposed for operating a motor vehicle or vessel in violation of law, to consider and take action on the following matters:

(1)iiSenate Rules 12.03(3) and (4) are suspended to permit the conference committee to add the following:

SECTIONi8.iiSection 521.457, Transportation Code, is amended by amending Subsections (e) and (f) and adding Subsection (f-1) to read as follows:

(e)iiExcept as provided by Subsections [Subsection] (f) and (f-1), an offense under this section is a Class C misdemeanor [punishable by:

[(1)iia fine of not less than $100 or more than $500; and

[(2)iiconfinement in county jail for a term of not less than 72 hours or more than six months].

(f)iiIf it is shown on the trial of an offense under this section that the person has previously been convicted of an offense under this section or an offense under Section 601.371(a), as that law existed before September 1, 2003, the offense is a Class B [A] misdemeanor.

(f-1)iiIf it is shown on the trial of an offense under this section that the license of the person has previously been suspended as the result of an offense involving the operation of a motor vehicle while intoxicated, the offense is a Class B misdemeanor.

4698 80th Legislature — Regular Session 68th Day


Explanation: The change is necessary to add a provision to the bill related to the penalty for the offense of driving while license invalid due to the operation of a motor vehicle while intoxicated.

(2)iiSenate Rules 12.03(3) and (4) are suspended to permit the conference committee to add the following:

SECTIONi9.iiSubchapter D, Chapter 542, Transportation Code, is amended by adding Sections 542.405 and 542.406 to read as follows:

Sec.i542.405.iiAMOUNT OF CIVIL PENALTY; LATE PAYMENT PENALTY. If a local authority enacts an ordinance to enforce compliance with the instructions of a traffic-control signal by the imposition of a civil or administrative penalty, the amount of:

(1)iithe civil or administrative penalty may not exceed $75; and

(2)iia late payment penalty may not exceed $25.

Sec.i542.406.iiDEPOSIT OF REVENUE FROM CERTAIN TRAFFIC PENALTIES. (a)iiIn this section, "photographic traffic signal enforcement system" means a system that:

(1)iiconsists of a camera system and vehicle sensor installed to exclusively work in conjunction with an electrically operated traffic-control signal;

(2)iiis capable of producing one or more recorded photographic or digital images that depict the license plate attached to the front or the rear of a motor vehicle that is not operated in compliance with the instructions of the traffic-control signal; and

(3)iiis designed to enforce compliance with the instructions of the traffic-control signal by imposition of a civil or administrative penalty against the owner of the motor vehicle.

(b)iiThis section applies only to a civil or administrative penalty imposed on the owner of a motor vehicle by a local authority that operates or contracts for the operation of a photographic traffic signal enforcement system with respect to a highway under its jurisdiction or that operates or contracts for the operation of any other type of electronic traffic law enforcement system consisting of a camera system that automatically produces one or more recorded photographs or digital images of the license plate on a motor vehicle or the operator of a motor vehicle.

(c)iiNot later than the 60th day after the end of a local authority's fiscal year, after deducting amounts the local authority is authorized by Subsection (d) to retain, the local authority shall:

(1)iisend 50 percent of the revenue derived from civil or administrative penalties collected by the local authority under this section to the comptroller for deposit to the credit of the regional trauma account established under Section 782.002, Health and Safety Code; and

(2)iideposit the remainder of the revenue in a special account in the local authority's treasury that may be used only to fund traffic safety programs, including pedestrian safety programs, public safety programs, intersection improvements, and traffic enforcement.

(d)iiA local authority may retain an amount necessary to cover the costs of:

(1)iipurchasing or leasing equipment that is part of or used in connection with the photographic traffic signal enforcement system in the local authority;

Saturday, May 26, 2007 SENATE JOURNAL 4699


(2)iiinstalling the photographic traffic signal enforcement system at sites in the local authority, including the costs of installing cameras, flashes, computer equipment, loop sensors, detectors, utility lines, data lines, poles and mounts, networking equipment, and associated labor costs;

(3)iioperating the photographic traffic signal enforcement system in the local authority, including the costs of creating, distributing, and delivering violation notices, review of violations conducted by employees of the local authority, the processing of fine payments and collections, and the costs associated with administrative adjudications and appeals; and

(4)iimaintaining the general upkeep and functioning of the photographic traffic signal enforcement system.

(e)iiChapter 133, Local Government Code, applies to fee revenue described by Subsection (c)(1).

(f)iiIf under Section 133.059, Local Government Code, the comptroller conducts an audit of a local authority and determines that the local authority retained more than the amounts authorized by this section or failed to deposit amounts as required by this section, the comptroller may impose a penalty on the local authority equal to twice the amount the local authority:

(1)iiretained in excess of the amount authorized by this section; or

(2)iifailed to deposit as required by this section.

Explanation: This change is necessary to provide for the administration of a civil or administrative penalty imposed by a local authority to enforce compliance with the instructions of a traffic-control signal.

(3)iiSenate Rules 12.03(3) and (4) are suspended to permit the conference committee to add the following:

SECTIONi13.iiSection 133.004, Local Government Code, is amended to read as follows:

Sec.i133.004.iiCIVIL FEES. This chapter applies to the following civil fees:

(1)iithe consolidated fee on filing in district court imposed under Section 133.151;

(2)iithe filing fee in district court for basic civil legal services for indigents imposed under Section 133.152;

(3)iithe filing fee in courts other than district court for basic civil legal services for indigents imposed under Section 133.153;

(4)iithe filing fees for the judicial fund imposed in certain statutory county courts under Section 51.702, Government Code;

(5)iithe filing fees for the judicial fund imposed in certain county courts under Section 51.703, Government Code;

(6)iithe filing fees for the judicial fund imposed in certain statutory probate courts under Section 51.704, Government Code;

(7)iifees collected under Section 118.015;

(8)iimarriage license fees for the family trust fund collected under Section 118.018;

(9)iimarriage license or declaration of informal marriage fees for the child abuse and neglect prevention trust fund account collected under Section 118.022; [and]

4700 80th Legislature — Regular Session 68th Day


(10)iithe filing fee for the judicial fund imposed in district court, statutory county court, and county court under Section 133.154; and

(11)iithe portion of the civil or administrative penalty described by Section 542.406(c)(1), Transportation Code, imposed by a local authority to enforce compliance with the instructions of a traffic-control signal.

Explanation: This change is necessary to provide for the administration of a civil or administrative penalty imposed by a local authority to enforce compliance with the instructions of a traffic-control signal.

(4)iiSenate Rules 12.03(3) and (4) are suspended to permit the conference committee to add the following:

SECTIONi14.iiSubtitle B, Title 9, Health and Safety Code, is amended by adding Chapter 782 to read as follows:

CHAPTER 782. REGIONAL EMERGENCY MEDICAL SERVICES

Sec.i782.001.iiDEFINITIONS. In this chapter:

(1)ii"Commission" means the Health and Human Services Commission.

(2)ii"Commissioner" means the executive commissioner of the Health and Human Services Commission.

Sec.i782.002.iiREGIONAL TRAUMA ACCOUNT. (a)iiThe regional trauma account is created as a dedicated account in the general revenue fund of the state treasury. Money in the account may be appropriated only to the commission to make distributions as provided by Section 782.003.

(b)iiThe account is composed of money deposited to the credit of the account under Section 542.406, Transportation Code, and the earnings of the account.

(c)iiSections 403.095 and 404.071, Government Code, do not apply to the account.

Sec.i782.003.iiPAYMENTS FROM THE REGIONAL TRAUMA ACCOUNT. (a)iiThe commissioner shall use money appropriated from the regional trauma account established under Section 782.002 to fund uncompensated care of designated trauma facilities and county and regional emergency medical services located in the area served by the trauma service area regional advisory council that serves the local authority submitting money under Section 542.406, Transportation Code.

(b)iiIn any fiscal year, the commissioner shall use:

(1)ii96 percent of the money appropriated from the account to fund a portion of the uncompensated trauma care provided at facilities designated as state trauma facilities by the Department of State Health Services;

(2)iitwo percent of the money appropriated from the account for county and regional emergency medical services;

(3)iione percent of the money appropriated from the account for distribution to the 22 trauma service area regional advisory councils; and

(4)iione percent of the money appropriated from the account to fund administrative costs of the commission.

(c)iiThe money under Subsection (b) shall be distributed in proportion to the amount deposited to the account from the local authority.

Saturday, May 26, 2007 SENATE JOURNAL 4701


Explanation: This change is necessary to provide that money from civil or administrative penalties imposed by a local authority to enforce compliance with the instructions of a traffic-control signal is to be used for regional emergency medical services.

(5)iiSenate Rules 12.03(3) and (4) are suspended to permit the conference committee to add the following:

SECTIONi15.iiSection 542.406, Transportation Code, as added by this Act, and Section 782.002, Health and Safety Code, as added by this Act, apply to revenue received by a local authority unit of this state from the imposition of a civil or administrative penalty on or after the effective date of this Act, regardless of whether the penalty was imposed before, on, or after the effective date of this Act.

Explanation: This change is necessary to implement the changes in law that provide for the administration of a civil or administrative penalty imposed by a local authority to enforce compliance with the instructions of a traffic-control signal.

(6)iiSenate Rules 12.03(3) and (4) are suspended to permit the conference committee to add the following:

SECTIONi16.iiNot later than December 1, 2007, the executive commissioner of the Health and Human Services Commission shall adopt rules to implement Chapter 782, Health and Safety Code, as added by this Act.

Explanation: This change is necessary to implement the changes in law that provide for the use of money from civil or administrative penalties imposed by a local authority to enforce compliance with the instructions of a traffic-control signal.

(7)iiSenate Rules 12.03(3) and (4) are suspended to permit the conference committee to add the following:

SECTIONi18.ii(a)iiExcept as provided by Subsection (b) of this section, this Act takes effect September 1, 2007.

(b)iiSections 9, 13, 14, 15, and 16 of this Act take effect only if Senate Bill No. 1119, Acts of the 80th Legislature, Regular Session, 2007, is enacted and becomes law.

Explanation: The change to the applicability provision of the bill is necessary to reflect the addition of SECTIONS 9, 13, 14, 15, and 16 to the conference committee report and to make the effectiveness of those SECTIONS contingent on the passage of Senate Bill No. 1119, Acts of the 80th Legislature, Regular Session, 2007.

SR 1175 was read and was adopted without objection.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1623 ADOPTED

Senator Carona called from the President's table the Conference Committee Report on HBi1623. The Conference Committee Report was filed with the Senate on Saturday, May 26, 2007.

On motion of Senator Carona, the Conference Committee Report was adopted by the following vote:iiYeasi28, Naysi2.

4702 80th Legislature — Regular Session 68th Day


Yeas:iiAveritt, Brimer, Carona, Deuell, Duncan, Ellis, Eltife, Estes, Fraser, Hegar, Hinojosa, Jackson, Janek, Lucio, Nelson, Nichols, Ogden, Seliger, Shapiro, Shapleigh, Uresti, VanideiPutte, Watson, Wentworth, West, Whitmire, Williams, Zaffirini.

Nays:iiHarris, Patrick.

Absent-excused:iiGallegos.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 119

Senator Ogden submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi119 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

OGDEN F. BROWN
ELLIS HANCOCK
HEGAR ISETT
LUCIO D. HOWARD
HERNANDEZ
On the part of the Senate On the part of the House

The Conference Committee Report on HBi119 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2096

Senator Uresti submitted the following Conference Committee Report:

Austin, Texas

May 24, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2096 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

Saturday, May 26, 2007 SENATE JOURNAL 4703


URESTI QUINTANILLA
HINOJOSA T. KING
LUCIO LUCIO
SHAPLEIGH PENA
ZAFFIRINI PICKETT
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2096 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1154

Senator Carona submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi1154 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

CARONA PHILLIPS
HINOJOSA HANCOCK
SELIGER KUEMPEL
WEST PENA
WILLIAMS SOLOMONS
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to the registration and regulation of metal recycling entities; providing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiThe heading to Chapter 1956, Occupations Code, is amended to read as follows:

CHAPTER 1956. [SALES TO METAL DEALERS AND]

METAL RECYCLING ENTITIES

SECTIONi2.iiChapter 1956, Occupations Code, is amended by amending Subchapter A and adding Subchapters A-1, A-2, and A-3 to read as follows:

SUBCHAPTER A. GENERAL PROVISIONS [SALE OF ALUMINUM, BRONZE, OR COPPER OR BRASS MATERIAL TO SECONDHAND METAL DEALERS]

Sec.i1956.001.iiDEFINITIONS. In this chapter [subchapter]:

4704 80th Legislature — Regular Session 68th Day


(1)ii"Aluminum material" means a product made from aluminum, an aluminum alloy, or an aluminum by-product. The term includes aluminum wiring and an aluminum beer keg but does not include another type of aluminum can used to contain a food or beverage.

(2)ii"Bronze material" means:

(A)iia cemetery vase, receptacle, or memorial made from bronze;

(B)iibronze statuary; or

(C)iimaterial readily identifiable as bronze, including bronze wiring.

(3)ii"Commission" means the Public Safety Commission.

(4)ii"Copper or brass material" means:

(A)iiinsulated or noninsulated copper wire or cable of the type used by a public utility or common carrier that contains copper or an alloy of copper or zinc [consists of at least 50 percent copper]; [or]

(B)iia copper or brass item of a type commonly used in construction or by a public utility; or

(C)iicopper pipe or copper tubing.

(5)i[(4)]ii"Department" means the Texas Department of Public Safety.

(6)ii"Director" means the public safety director.

(7)ii"Metal recycling entity" means a business that is operated from a fixed location and is predominantly engaged in:

(A)iiperforming the manufacturing process by which scrap, used, or obsolete ferrous or nonferrous metal is converted into raw material products consisting of prepared grades and having an existing or potential economic value, by a method that in part requires the use of powered tools and equipment, including processes that involve processing, sorting, cutting, classifying, cleaning, baling, wrapping, shredding, shearing, or changing the physical form of that metal;

(B)iithe use of raw material products described under Paragraph (A) in the manufacture of producer or consumer goods; or

(C)iipurchasing or otherwise acquiring scrap, used, or obsolete ferrous or nonferrous metals for the eventual use of the metal for the purposes described by Paragraph (A) or (B).

(8)i[(5)]ii"Personal identification document" means:

(A)iia valid driver's license issued by a state in the United States;

(B)iia United States military identification card; or

(C)ii[a passport issued by the United States or by another country and recognized by the United States; or

[(D)]iia personal identification certificate issued by the department under Section 521.101, Transportation Code, or a corresponding card or certificate issued by another state.

(9)i[(6)]ii"Regulated material" means:

(A)iialuminum material;

(B)iibronze material; [or]

(C)iicopper or brass material; or

(D)iiregulated metal.

(10)ii"Regulated metal" means:

(A)iimanhole covers;

Saturday, May 26, 2007 SENATE JOURNAL 4705


(B)iiguardrails;

(C)iimetal cylinders designed to contain compressed air, oxygen, gases, or liquids;

(D)iibeer kegs made from metal other than aluminum;

(E)iihistorical markers or cemetery vases, receptacles, or memorials made from metal other than aluminum;

(F)iiunused rebar;

(G)iistreet signs;

(H)iidrain gates;

(I)iisafes;

(J)iicommunication, transmission, and service wire or cable;

(K)iicondensing or evaporator coils for heating or air conditioning units;

(L)iiutility structures, including the fixtures and hardware;

(M)iialuminum or stainless steel containers designed to hold propane for fueling forklifts; and

(N)iimetal railroad equipment, including tie plates, signal houses, control boxes, signs, signals, traffic devices, traffic control devices, traffic control signals, switch plates, e-clips, and rail tie functions

[(7)ii"Secondhand metal dealer" means:

[(A)iian auto wrecker, a scrap metal processor, or another person or organization that purchases, collects, or solicits regulated material; or

[(B)iia person who operates or maintains a scrap metal yard or other place in which scrap metal or cast-off regulated material is collected or kept for shipment, sale, or transfer].

Sec.i1956.002.iiEXCEPTION. This chapter [subchapter] does not apply to:

(1)iia purchase of regulated material from a public utility or a manufacturing, industrial, [or other] commercial, retail, or other seller [vendor] that sells regulated material in the ordinary course of the seller's [vendor's] business;

(2)iia purchase of regulated material by a manufacturer whose primary business is the manufacture of iron and steel products made from melting scrap iron and scrap steel; or

(3)iithe transport or hauling of recyclable materials to or from the metal recycling entity.

Sec.i1956.003.iiLOCAL LAW. (a)iiA county, municipality, or political subdivision of this state may adopt a rule, charter, or ordinance or issue an order or impose standards that are more stringent than but do not conflict with this chapter or rules adopted under this chapter.

(b)iiA county, municipality, or political subdivision of this state may issue a license or permit to a business to allow the business to act as a metal recycling entity in that county or municipality and may impose a fee not to exceed $250 for the issuance or renewal of the license or permit.

(b-1)iiA municipality or political subdivision of this state, other than a county, may not increase the local license or permit fee imposed on a metal recycling facility to an amount that exceeds 25 percent of the fee charged by the municipality or political subdivision on January 1, 2007. This subsection expires January 1, 2010.

4706 80th Legislature — Regular Session 68th Day


(c)iiA county, municipality, or political subdivision of this state that issues a license or permit to a business as authorized under Subsection (b) shall submit to the department in the manner required by the department information on each business that is issued a license or permit.

(d)iiA municipality or political subdivision of this state, other than a county, may not increase the local license or permit fee imposed on a metal recycling facility unless the increase is approved by the local governing body. A request for an increase in the local license or permit fee must be based on the costs associated with law enforcement and administration of the licensing or permitting program. The municipality or political subdivision must submit a report to the department on the law enforcement and administrative costs associated with the fee increase.

(e)iiA county may increase the local license or permit fee imposed on a metal recycling facility one additional time before the second anniversary of the date of the initial fee increase. The fee increase must be based on the average cost charged by municipalities statewide.

[Sections 1956.004-1956.010 reserved for expansion]

SUBCHAPTER A-1. POWERS AND DUTIES

Sec.i1956.011.iiADMINISTRATION OF CHAPTER. The department shall administer this chapter.

Sec.i1956.012.iiDEPARTMENT STAFF. The department may employ administrative and clerical staff as necessary to carry out this chapter.

Sec.i1956.013.iiRULES. The commission may adopt rules to administer this chapter, including rules:

(1)iiestablishing minimum requirements for registration under this chapter; and

(2)iiadopting forms required by this chapter.

Sec.i1956.014.iiFEES; REPORTS. (a)iiThe commission by rule shall prescribe fees in reasonable amounts sufficient to cover the costs of administering this chapter, including fees for:

(1)iian initial application for a certificate of registration;

(2)iiissuance of a certificate of registration;

(3)iiissuance of a renewal certificate of registration; and

(4)iiissuance of a duplicate certificate of registration or duplicate renewal certificate of registration.

(b)iiThe commission may not impose a fee for issuance of a certificate of registration that exceeds $250 annually. The department shall report annually to the legislature, not later than December 1, any costs associated with administering this chapter that are not covered by the fees assessed under this chapter.

(c)iiThe department annually shall submit to both houses of the legislature a report on the number of metal recycling entities who have complied with the registration requirements under this chapter and the total number of metal recycling entities identified statewide. The report must include the information on metal recycling entities submitted to the department by municipalities, counties, and other political subdivisions of this state.

Saturday, May 26, 2007 SENATE JOURNAL 4707


(d)iiNot later than March 1, 2008, the department shall submit to both houses of the legislature a report on the actual costs incurred by the department in administering this chapter. This subsection expires January 1, 2009.

Sec.i1956.015.iiSTATEWIDE ELECTRONIC REPORTING SYSTEM. (a)iiThe department shall establish a statewide electronic reporting system to track the sales of regulated metal reported to the department under Section 1956.036.

(b)iiThe department shall post a summary of the reports provided to the department under Section 1956.036 on the department's Internet website. The summary must include by county or region the frequency with which a person presents regulated materials for sale to a metal recycling entity. The summary may not identify any person to which the metal recycling entity sells the regulated materials.

(c)iiSubsection (b) does not apply to regulated material sold by a utility company, municipality, manufacturer, railroad, cemetery, cable or satellite entity, or other business entity that routinely has access to regulated metal.

(d)iiThe department shall maintain the confidentiality of information provided under this section that relates to the financial condition or business affairs of a metal recycling entity or that is otherwise commercially sensitive. The confidential information is not subject to disclosure under Chapter 552, Government Code.

[Sections 1956.016-1956.020 reserved for expansion]

SUBCHAPTER A-2. CERTIFICATE OF REGISTRATION

Sec.i1956.021.iiREGISTRATION REQUIRED. A person may not act as a metal recycling entity or represent to the public that the person is a metal recycling entity unless the person is registered under this chapter.

Sec.i1956.022.iiISSUANCE OF CERTIFICATE; QUALIFICATIONS. (a)iiThe department shall issue a certificate of registration to an applicant who:

(1)iiapplies and pays a registration fee; and

(2)iipresents any relevant evidence relating to the applicant's qualifications as required by commission rule.

(b)iiThe commission by rule may establish qualifications for the holder of a certificate of registration under this chapter, which may include accepting copies of a license or permit issued by a county or municipality authorizing a metal recycling entity to conduct business in that county or municipality.

Sec.i1956.023.iiTERM OF CERTIFICATE. (a)iiA certificate of registration is valid for two years after the date of issuance.

(b)iiThe department shall adopt a system under which certificates of registration expire and are renewed on various dates.

(c)iiNot later than the 45th day before the date a person's certificate of registration is scheduled to expire, the department shall send written notice of the impending expiration to the person at the person's last known address according to the records of the department.

(d)iiA person whose certificate of registration has expired may not make a representation for which a certificate of registration is required under Section 1956.021 or perform collections services until the certificate has been renewed.

4708 80th Legislature — Regular Session 68th Day


Sec.i1956.024.iiRENEWAL OF CERTIFICATE. (a)iiTo renew a certificate of registration, a person must submit an application for renewal in the manner prescribed by the department.

(b)iiA person who is otherwise eligible to renew a certificate of registration may renew an unexpired certificate by paying the required renewal fee to the department before the expiration date of the certificate.

(c)iiA person whose certificate of registration has been expired for 90 days or less may renew the certificate by paying to the department a renewal fee that is equal to 1-1/2 times the normally required renewal fee.

(d)iiA person whose certificate of registration has been expired for more than 90 days but less than one year may renew the certificate by paying to the department a renewal fee that is equal to two times the normally required renewal fee.

(e)iiA person whose certificate of registration has been expired for one year or more may not renew the certificate. The person may obtain a new certificate of registration by complying with the requirements and procedures, including the examination requirements, for an original certificate.

[Sections 1956.025-1956.030 reserved for expansion]

SUBCHAPTER A-3. PRACTICE BY CERTIFICATE HOLDERS

Sec.i1956.031i[1956.003].iiNOTICE TO SELLERS. (a)iiA metal recycling entity [secondhand metal dealer] shall at all times maintain in a prominent place in the entity's [dealer's] place of business, in open view to a seller of regulated material, a notice in two-inch lettering that:

(1)iiincludes the following language:

"A PERSON ATTEMPTING TO SELL ANY REGULATED MATERIAL MUST PRESENT SUFFICIENT IDENTIFICATION AND WRITTEN PROOF OF OWNERSHIP REQUIRED BY STATE LAW."

"WARNING: STATE LAW PROVIDES A CRIMINAL PENALTY FOR A PERSON WHO INTENTIONALLY PROVIDES A FALSE DOCUMENT OF IDENTIFICATION OR OTHER FALSE INFORMATION TO A METAL RECYCLING ENTITY [SECONDHAND METAL DEALER] WHILE ATTEMPTING TO SELL ANY REGULATED MATERIAL."; and

(2)iistates the metal recycling entity's [secondhand metal dealer's] usual business hours.

(b)iiThe notice required by this section may be contained on a sign that contains another notice if the metal recycling entity [secondhand metal dealer] is required to display another notice under applicable law.

Sec.i1956.032i[1956.004].iiINFORMATION PROVIDED BY SELLER. (a)iiExcept as provided by Subsection (f), a [A] person attempting to sell regulated material to a metal recycling entity [secondhand metal dealer] shall:

(1)iidisplay to the metal recycling entity [secondhand metal dealer] the person's personal identification document [or sign a statement that the person does not possess such a document]; [and]

(2)iiprovide to the metal recycling entity the make, model, and license plate number of the motor vehicle used to transport the regulated material; and

(3)iieither:

Saturday, May 26, 2007 SENATE JOURNAL 4709


(A)iipresent written documentation evidencing that the person is the legal owner or is lawfully entitled to sell the regulated material; or

(B)iisign a written statement provided by the metal recycling entity [secondhand metal dealer] that the person is the legal owner of or is lawfully entitled to sell the regulated material offered for sale.

(b)iiA person required by a municipality to prepare a signed statement consisting of the information required by Subsection (a)(3) [(a)(1) or (2)] may use the statement required by the municipality to comply with Subsection (a)(3) [(a)(1) or (2)].

(c)iiThe metal recycling entity [secondhand metal dealer] or the entity's [dealer's] agent shall visually verify the accuracy of the identification presented by the seller at the time of the purchase of regulated material and make a copy of the identification to be maintained by the entity in the entity's records, except as otherwise provided by Subsection (f).

(d)iiThe metal recycling entity or the entity's agent for recordkeeping purposes may photograph the seller's entire face, not including any hat, and obtain the name of the seller's employer.

(e)iiThe metal recycling entity or the entity's agent for recordkeeping purposes may take a photograph of the motor vehicle of the seller in which the make, model, and license plate number of the motor vehicle are identifiable in lieu of the information required under Subsection (a)(3).

(f)iiThe metal recycling entity is not required to make a copy of the identification as required under Subsection (c) or collect the information required under Subsection (a)(3) if:

(1)iithe seller signs the written statement as required under Subsection (a)(3);

(2)iithe seller has previously provided the information required under Subsection (a); and

(3)iithe previously provided information has not changed.

Sec.i1956.033i[1956.005].iiRECORD OF PURCHASE. (a)iiEach metal recycling entity [A secondhand metal dealer] in this state shall keep an accurate electronic record or an accurate and legible written record of each purchase made in the course of the entity's [dealer's] business from an individual of:

(1)iicopper or brass material [in excess of 50 pounds];

(2)iibronze material; [or]

(3)iialuminum material; or

(4)iiregulated metal [in excess of 40 pounds].

(b)iiThe record must be in English and include:

(1)iithe place and date of the purchase;

(2)iithe name and address of each individual from whom the regulated material is purchased or obtained;

(3)iithe identifying number of the seller's personal identification document;

(4)iia description made in accordance with the custom of the trade of the type and quantity of regulated material purchased; and

(5)iithe information [statement] required by Section 1956.032(a)(3) [1956.004(a)(2)].

4710 80th Legislature — Regular Session 68th Day


Sec.i1956.034i[1956.006].iiPRESERVATION OF RECORDS. A metal recycling entity [secondhand metal dealer] shall preserve each record required by Sections 1956.032 and 1956.033 [Section 1956.005] until the third anniversary of the date the record was made.

Sec.i1956.035i[1956.007].iiINSPECTION OF RECORDS BY PEACE OFFICER. (a)iiOn request, a metal recycling entity [secondhand metal dealer] shall permit a peace officer of this state to inspect, during the entity's [dealer's] usual business hours:

(1)iia record required by Section 1956.033 [1956.005]; or

(2)iiregulated material in the entity's [dealer's] possession.

(b)iiThe inspecting officer shall inform the entity [dealer] of the officer's status as a peace officer.

Sec.i1956.036 [1956.008].iiFURNISHING OF REPORT TO DEPARTMENT. (a)iiExcept as provided by Subsection (b), not later than the seventh day after the date of the purchase or other acquisition of material for which a record is required under Section 1956.033 [1956.005], a metal recycling entity [secondhand metal dealer] shall send by facsimile or electronic mail to or file with the department a report containing the information required to be recorded under that section.

(b)iiIf a metal recycling entity [secondhand metal dealer] purchases bronze material that is a cemetery vase, receptacle, memorial, or statuary or a pipe that can reasonably be identified as aluminum irrigation pipe, the entity [dealer] shall:

(1)iinot later than the close of business on the entity's [dealer's] first working day after the purchase date, [orally] notify the department; and

(2)iinot later than the fifth day after the purchase date, mail to or file with the department a report containing the information required to be recorded under Section 1956.033 [1956.005].

(c)iiSubsection (b) does not apply to a purchase from:

(1)iithe manufacturer or fabricator of the material or pipe;

(2)iia seller bearing a bill of sale for the material or pipe; or

(3)iithe owner of the material or pipe.

Sec.i1956.037i[1956.009].iiPLACEMENT OF ITEMS ON HOLD. (a)iiA metal recycling entity may not dispose of, process, sell, or remove from the premises an item of regulated metal unless:

(1)iithe entity acquired the item more than 72 hours, excluding weekends and holidays, before the disposal, processing, sale, or removal; or

(2)iithe entity purchased the item from a manufacturing, industrial, commercial, retail, or other seller that sells regulated material in the ordinary course of its business.

(b)iiA peace officer who has reasonable suspicion to believe that an item of regulated material in the possession of a metal recycling entity [secondhand metal dealer] is stolen may place the item on hold by issuing to the entity [dealer] a written notice that:

(1)iispecifically identifies the item alleged to be stolen and subject to the hold; and

(2)iiinforms the entity [dealer] of the requirements of Subsection (c) [(b)].

Saturday, May 26, 2007 SENATE JOURNAL 4711


(c)i[(b)]iiOn receiving the notice, the entity [dealer] may not, except as provided by Subsection (e), process or remove from the entity's [dealer's] premises the identified item before the 60th [11th] day after the date the notice is issued unless the hold is released at an earlier time in writing by a peace officer of this state or a court order.

(d)i[(c)]iiAfter the holding period expires, the entity [dealer] may dispose of the item unless disposition violates a court order.

(e)iiIf a hold is placed on a purchase of regulated material, a metal recycling entity may not dispose of, process, sell, or remove from the premises any item from the purchased material unless the hold on the material is released.

Sec.i1956.038i[1956.010].iiPROHIBITED ACTS. A person may not, with the intent to deceive:

(1)iidisplay to a metal recycling entity [secondhand metal dealer] a false or invalid personal identification document in connection with the person's attempted sale of regulated material; [or]

(2)iimake a false, material statement or representation to a metal recycling entity [secondhand metal dealer] in connection with:

(A)iithat person's execution of a written statement required by Section 1956.032(a)(3) [1956.004(a)(1) or (2)]; or

(B)iithe entity's [dealer's] efforts to obtain the information required under Section 1956.033(b); or

(3)iidisplay or provide to a metal recycling entity any information required under Section 1956.032 that the person knows is false or invalid [1956.005(b)].

Sec.i1956.039.iiHOURS FOR PURCHASING MATERIAL. (a)iiSubject to Subsection (b), a county, municipality, or political subdivision may establish the hours during which a metal recycling entity may purchase regulated material.

(b)iiA metal recycling entity may not purchase from the general public regulated material:

(1)iimore than 15 consecutive hours in one day; or

(2)iilater than 9 p.m.

Sec.i1956.040 [1956.011]. CRIMINAL PENALTY. (a)iiA person commits an offense if the person knowingly violates Section 1956.038 [this subchapter]. An

[(b)iiExcept as provided by Subsection (c), an] offense under this subsection [section] is a Class A [B] misdemeanor unless it is shown on trial of the offense that[.

[(c)iiAn offense under this section is a Class A misdemeanor if] the person has previously been convicted of a violation of this subchapter, in which event the offense is a state jail felony [within the 36 months preceding the date of the offense].

(b)iiA person commits an offense if the person knowingly buys stolen regulated material. An offense under this subsection is a Class A misdemeanor unless it is shown on trial of the offense that the person has previously been convicted under this subsection, in which event the offense is a state jail felony.

(c)iiA person commits an offense if the person knowingly sells stolen regulated material. An offense under this subsection is a state jail felony unless it is shown on trial of the offense that the person has previously been convicted under this subsection, in which event the offense is a third degree felony.

4712 80th Legislature — Regular Session 68th Day


(d)iiOn the conviction of a metal recycling entity [secondhand metal dealer] for an offense punishable under Subsection (b) [(c)], a court, in addition to imposing any other applicable penalty, may order that the entity [dealer] cease doing business as a metal recycling entity [secondhand metal dealer] for a period not to exceed:

(1)ii30 days from the date of the order for each violation that forms the basis of the conviction for a first offense; and

(2)ii180 days from the date of the order for each violation that forms the basis of the conviction if it is shown on trial of the offense that the person has previously been convicted under this section.

(e)iiIf conduct that constitutes an offense under this section also constitutes an offense under any other law, the actor may be prosecuted under this section or the other law.

SECTIONi3.iiThe heading to Subchapter C, Chapter 1956, Occupations Code, is amended to read as follows:

SUBCHAPTER C. RESTRICTIONS ON SALE OF CERTAIN ITEMS TO METAL RECYCLING ENTITIES

SECTIONi4.iiChapter 1956, Occupations Code, is amended by adding Subchapters D and E to read as follows:

SUBCHAPTER D. DISCIPLINARY PROCEDURES

Sec.i1956.151.iiDENIAL OF CERTIFICATE; DISCIPLINARY ACTION. The department shall deny an application for a certificate of registration, suspend or revoke a certificate of registration, or reprimand a person who is registered under this chapter if the person:

(1)iiobtains a certificate of registration by means of fraud, misrepresentation, or concealment of a material fact;

(2)iisells, barters, or offers to sell or barter a certificate of registration;

(3)iiviolates a rule adopted under this chapter; or

(4)iiviolates Section 1956.021.

Sec.i1956.152.iiINVESTIGATION. Within the limits of available resources, the department may investigate:

(1)iia person who engages in a practice that violates this chapter; and

(2)iia complaint filed with the department against a person registered under this chapter.

Sec.i1956.153.iiHEARING. (a)iiA person whose application for a certificate of registration is denied, whose certificate of registration is suspended or revoked, or who is reprimanded is entitled to a hearing before the department if the person submits to the department a written request for the hearing.

(b)iiA hearing is governed by department rules for a contested hearing and by Chapter 2001, Government Code.

[Sections 1956.154-1956.200 reserved for expansion]

SUBCHAPTER E. OTHER PENALTIES AND ENFORCEMENT PROVISIONS

Sec.i1956.201.iiENFORCEMENT PROCEEDINGS; INJUNCTION. (a)iiThe department, the attorney general, or the district, county, or city attorney for the county or municipality in which an alleged violation of this chapter occurs may, on receipt of a verified complaint, bring an appropriate administrative or judicial proceeding to enforce this chapter or a rule adopted under this chapter.

Saturday, May 26, 2007 SENATE JOURNAL 4713


(b)iiThe attorney general or an attorney representing the state may initiate an action for an injunction to prohibit a person from violating this chapter or a rule adopted under this chapter.

Sec.i1956.202.iiCIVIL PENALTY. (a)iiExcept as provided by Subsection (d), a person who violates this chapter or a rule adopted under this chapter is liable to this state for a civil penalty of not more than $1,000 for each violation.

(b)iiThe amount of the penalty shall be based on:

(1)iithe seriousness of the violation;

(2)iithe history of previous violations;

(3)iithe amount necessary to deter a future violation; and

(4)iiany other matter that justice may require.

(c)iiThe attorney general may sue to collect a civil penalty under this section. In the suit the attorney general may recover, on behalf of the state, the reasonable expenses incurred in obtaining the penalty, including investigation and court costs, reasonable attorney's fees, witness fees, and other expenses.

(d)iiA civil penalty may not be assessed under this section for conduct described by Section 1956.038.

Sec.i1956.203.iiCRIMINAL PENALTY FOR CERTAIN SOLICITATION. (a)iiA person commits an offense if the person solicits the purchase of regulated material at a location other than a business location at which the material is produced as a by-product in the ordinary course of that business.

(b)iiAn offense under this section is a Class B misdemeanor.

SECTIONi5.iiSubdivision (1), Section 1956.101, Occupations Code, is repealed.

SECTIONi6.ii(a)iiNot later than January 1, 2008, the Public Safety Commission shall adopt the rules necessary to implement the changes in law made by this Act to Chapter 1956, Occupations Code.

(b)iiNot later than April 1, 2008, the Department of Public Safety of the State of Texas shall establish the statewide reporting system to track the sales of regulated metal as required under Chapter 1956, Occupations Code, as amended by this Act.

SECTIONi7.iiNotwithstanding Section 1956.021, Occupations Code, as added by this Act, a person is not required to hold a certificate of registration as a metal recycling entity under Chapter 1956, Occupations Code, as amended by this Act, before April 1, 2008.

SECTIONi8.iiThe change in law made by this Act applies only to an offense committed on or after the effective date of this Act. An offense committed before that date is governed by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense was committed before the effective date of this Act if any element of the offense was committed before that date.

SECTIONi9.iiThis Act takes effect September 1, 2007.

The Conference Committee Report on SBi1154 was filed with the Secretary of the Senate.

4714 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1623

Senator Carona submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi1623 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

CARONA PHILLIPS
ELLIS DESHOTEL
WENTWORTH GATTIS
WILLIAMS HARPER-BROWN
MACIAS
On the part of the Senate On the part of the House

The Conference Committee Report on HBi1623 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3066

Senator Patrick submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3066 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

PATRICK TRUITT
WILLIAMS ANCHIA
DUNCAN ISETT
URESTI MENENDEZ
WOOLLEY
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3066 was filed with the Secretary of the Senate.

Saturday, May 26, 2007 SENATE JOURNAL 4715


CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1562

Senator Hinojosa submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi1562 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HINOJOSA P. KING
AVERITT HARPER-BROWN
ELTIFE HUGHES
VANiDEiPUTTE MALLORY CARAWAY
WHITMIRE
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to treatment of certain animals and training for animal control officers; creating an offense.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiTitle 10, Health and Safety Code, is amended by adding Chapter 829 to read as follows:

CHAPTER 829.iiANIMAL CONTROL OFFICER TRAINING

Sec.i829.001.iiDEFINITIONS.iiIn this chapter:

(1)ii"Animal control officer" means a person who:

(A)iiis employed, appointed, or otherwise engaged primarily to enforce laws relating to animal control; and

(B)iiis not a peace officer.

(2)ii"Department" means the Department of State Health Services.

Sec.i829.0015.iiAPPLICABILITY OF CHAPTER.iiThe commissioners court of a county that has a population of 75,000 or less may adopt an order exempting the county from the application of this chapter. This chapter does not apply within the boundaries of a county for which an order is adopted under this section.

Sec.i829.002.iiTRAINING REQUIRED.iiA person may not perform the duties of an animal control officer unless:

(1)iithe person:

(A)iicompletes a basic animal control course under this chapter not later than the first anniversary of the date the person assumes animal control duties; or

4716 80th Legislature — Regular Session 68th Day


(B)iicompleted a personnel training course on or before June 30, 2008, under Section 823.004 as it existed on that date; and

(2)iithe person completes 30 hours of continuing education under this chapter during each three-year period following:

(A)iithe date the person completes the basic animal control course; or

(B)iiJune 30, 2008, if the person completed a personnel training course under Subdivision (1)(B).

Sec.i829.003.iiTRAINING COURSES.ii(a) The department shall prescribe the standards and curriculum for basic and continuing education animal control courses. The curriculum for both the basic and continuing education courses must include the following topics:

(1)iistate laws governing animal control and protection and animal cruelty;

(2)iianimal health and disease recognition, control, and prevention;

(3)iithe humane care and treatment of animals;

(4)iistandards for care and control of animals in an animal shelter;

(5)iistandards and procedures for the transportation of animals;

(6)iiprinciples and procedures for capturing and handling stray domestic animals and wildlife;

(7)iifirst aid for injured animals;

(8)iithe documentation of animal cruelty evidence and courtroom procedures;

(9)iianimal shelter operations and administration;

(10)iispaying and neutering, microchipping, and adoption;

(11)iicommunications and public relations;

(12)iistate and federal laws for possession of controlled substances and other medications; and

(13)iiany other topics pertinent to animal control and animal shelter personnel.

(b)iiIn prescribing the standards and curriculum of courses under this chapter, the department shall:

(1)iidetermine what is considered satisfactory completion of a course;

(2)iidetermine what is considered a passing grade on any postcourse tests and practical applications; and

(3)iirequire that a person attend all sessions of a course.

(c)iiA basic animal control course must be at least 12 hours.

(d)iiIn developing and approving the criteria and curriculum for animal control courses, the department shall consult with the Texas Animal Control Association and other animal control and animal protection organizations as the department considers appropriate.

Sec.i829.004.iiAVAILABILITY OF COURSES.ii(a) The department or the department's designee shall offer at least two basic animal control courses every calendar year in each of the department's zoonosis control regions.

(b)iiThe department or the department's designee shall offer at least 12 hours of continuing education animal control courses each calendar year in each of the department's zoonosis control regions.

Saturday, May 26, 2007 SENATE JOURNAL 4717


(c)iiThe department shall ensure the additional availability of animal control courses through sponsors approved by the department, which may include the Texas Animal Control Association.

Sec.i829.005.iiFEE.iiThe department and any authorized animal control course sponsor may charge reasonable fees to cover the cost of arranging and conducting an animal control course.

Sec.i829.006.iiISSUANCE OF CERTIFICATE.ii(a) The department or the department's designee shall:

(1)iimaintain the training records for each person satisfactorily completing any course offered under this chapter for the purpose of documenting and ensuring that the person is in compliance with the requirements of this chapter; and

(2)iiissue a certificate to each person satisfactorily completing a course offered under this chapter that contains:

(A)iithe person's name;

(B)iithe name of the course; and

(C)iithe date the course was completed.

(b)iiThe department or the department's designee may charge a reasonable fee to cover the cost of issuing a certificate required by Subsection (a).

Sec.i829.007.iiFACILITY CERTIFICATE.iiThe department shall issue a certificate to an animal shelter inspected under Section 823.003 or a quarantine or impoundment facility inspected under Section 826.052 that the department or the veterinarian conducting the inspection, as applicable, determines complies with this chapter.

Sec.i829.008.iiPAYMENT OF FEE.iiA political subdivision of this state may require that an individual pay a fee for a course or certificate under this chapter.

Sec.i829.009.iiCIVIL REMEDY.iiA person may sue for injunctive relief to prevent or restrain a substantial violation of this chapter.

SECTIONi2.iiSubsections (a) and (d), Section 823.003, Health and Safety Code, are amended to read as follows:

(a)iiEach animal shelter operated in this state shall comply with the standards for:

(1)iihousing and sanitation existing on September 1, 1982, and adopted under Chapter 826; and

(2)iianimal control officer training adopted under Chapter 829 [(Rabies Control Act of 1981)].

(d)iiEach person who operates an animal shelter shall employ a veterinarian at least once a year to inspect the shelter to determine whether it complies with the requirements of this chapter and Chapter 829. The veterinarian shall file copies of the veterinarian's [his] report with the person operating the shelter and with the department on forms prescribed by the department.

SECTIONi3.iiSection 826.052, Health and Safety Code, is amended to read as follows:

Sec.i826.052.iiINSPECTIONS.iiAn employee of the department, on the presentation of appropriate credentials to the local rabies control authority or the authority's designee, may conduct a reasonable inspection of a quarantine or impoundment facility at a reasonable hour to determine if the facility complies with:

(1)iithe minimum standards adopted by the board for those facilities; and

4718 80th Legislature — Regular Session 68th Day


(2)iithe requirements for animal control officer training adopted under Chapter 829.

SECTIONi4.iiSection 801.004, Occupations Code, is amended to read as follows:

Sec.i801.004.iiAPPLICATION OF CHAPTER.iiThis chapter does not apply to:

(1)iithe treatment or care of an animal in any manner by the owner of the animal, an employee of the owner, or a designated caretaker of the animal, unless the ownership, employment, or designation is established with the intent to violate this chapter;

(2)iia person who performs an act prescribed by the board as an accepted livestock management practice, including:

(A)iicastrating a male animal raised for human consumption;

(B)iidocking or earmarking an animal raised for human consumption;

(C)iidehorning cattle;

(D)iiaiding in the nonsurgical birth process of a large animal, as defined by board rule;

(E)iitreating an animal for disease prevention with a nonprescription medicine or vaccine;

(F)iibranding or identifying an animal in any manner;

(G)iiartificially inseminating an animal, including training, inseminating, and compensating for services related to artificial insemination; and

(H)iishoeing a horse;

(3)iithe performance of a cosmetic or production technique to reduce injury in poultry intended for human consumption;

(4)iithe performance of a duty by a veterinarian's employee if:

(A)iithe duty involves food production animals;

(B)iithe duty does not involve diagnosis, prescription, or surgery;

(C)iithe employee is under the direction and general supervision of the veterinarian; and

(D)iithe veterinarian is responsible for the employee's performance;

(5)iithe performance of an act by a person who is a full-time student of an accredited college of veterinary medicine or is a foreign graduate of a board-approved equivalent competency program for foreign veterinary graduates and who is participating in a board-approved extern or preceptor program if the act is performed under the direct supervision of a veterinarian employing the person;

(6)iian animal shelter employee who performs euthanasia in the course and scope of the person's employment if the person has successfully completed training in accordance with Chapter 829 [offered by the Texas Department of Health under Section 823.004], Health and Safety Code;

(7)iia person who is engaged in a recognized state-federal cooperative disease eradication or control program or an external parasite control program while the person is performing official duties required by the program;

(8)iia person who, without expectation of compensation, provides emergency care in an emergency or disaster; or

(9)iia consultation given to a veterinarian in this state by a person who:

(A)iiresides in another state; and

Saturday, May 26, 2007 SENATE JOURNAL 4719


(B)iiis lawfully qualified to practice veterinary medicine under the laws of that state.

SECTIONi5.iiSubsection (c), Section 38.151, Penal Code, is amended to read as follows:

(c)iiAn offense under this section is:

(1)iia Class C misdemeanor if the person commits an offense under Subsection (b)(1);

(2)iia Class B misdemeanor if the person commits an offense under Subsection (b)(2);

(3)iia Class A misdemeanor if the person commits an offense under Subsection (b)(3), (4), or (5);

(4)iiexcept as provided by Subdivision (5), a state jail felony if the person commits an offense under Subsection (b)(6) or (7) by injuring a police service animal or by engaging in conduct likely to injure the animal; or

(5)iia felony of the second [third] degree if the person commits an offense under Subsection (b)(6) or (7) by:

(A) killing a police service animal or [by] engaging in conduct likely to kill the animal;

(B)iiinjuring a police service animal in a manner that materially and permanently affects the ability of the animal to perform as a police service animal; or

(C)iiengaging in conduct likely to injure a police service animal in a manner that would materially and permanently affect the ability of the animal to perform as a police service animal.

SECTIONi6.iiEffective July 1, 2008, Section 823.004, Health and Safety Code, is repealed.

SECTIONi7.iiNot later than December 1, 2007, the Department of State Health Services shall prescribe the standards and curriculum to be used in an animal control course required under Chapter 829, Health and Safety Code, as added by this Act.

SECTIONi8.iiThe changes in law made to Subsection (c), Section 38.151, Penal Code, by this Act apply only to an offense committed on or after the effective date of this Act. An offense committed before the effective date of this Act is covered by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense was committed before the effective date of this Act if any element of the offense was committed before that date.

SECTIONi9.ii(a)iiExcept as provided by Subsection (b) of this section, this Act takes effect September 1, 2007.

(b)iiSections 829.002 and 829.009, Health and Safety Code, as added by this Act, take effect July 1, 2008.

The Conference Committee Report on SBi1562 was filed with the Secretary of the Senate.

4720 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 155

Senator Lucio submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi155 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

LUCIO PICKETT
CARONA SOLOMONS
VANiDEiPUTTE TRUITT
HEGAR QUINTANILLA
ELLIS RODRIGUEZ
On the part of the Senate On the part of the House

The Conference Committee Report on HBi155 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1499

Senator Zaffirini submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi1499 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

ZAFFIRINI CORTE
CARONA ESCOBAR
ELLIS GARCIA
HEGAR ISETT
ELTIFE TAYLOR
On the part of the Senate On the part of the House

Saturday, May 26, 2007 SENATE JOURNAL 4721


A BILL TO BE ENTITLED
AN ACT

relating to the meeting notice that a governmental body may post in certain emergency situations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 551.045, Government Code, is amended by adding Subsection (e) to read as follows:

(e)iiFor purposes of Subsection (b)(2), the sudden relocation of a large number of residents from the area of a declared disaster to a governmental body's jurisdiction is considered a reasonably unforeseeable situation for a reasonable period immediately following the relocation. Notice of an emergency meeting or supplemental notice of an emergency item added to the agenda of a meeting to address a situation described by this subsection must be given to members of the news media as provided by Section 551.047 not later than one hour before the meeting.

SECTIONi2.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

The Conference Committee Report on SBi1499 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 344

Senator Carona submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi344 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

CARONA J. DAVIS
NELSON EISSLER
DEUELL HOPSON
NICHOLS PARKER
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to the additional exit conference required following inspection, survey, or investigation of, and the temporary change of ownership licenses for, certain facilities.

4722 80th Legislature — Regular Session 68th Day


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 142.009, Health and Safety Code, is amended by amending Subsections (f) and (g) and adding Subsection (g-1) to read as follows:

(f)iiAt the conclusion of a survey or complaint investigation, the [The] department shall fully inform the person who is in charge of the home and community support services agency of the preliminary findings of the survey at an exit conference and shall give the person a reasonable opportunity to submit additional facts or other information to the department's authorized representative in response to those findings. The response shall be made a part of the record of the survey for all purposes. The department's representative shall leave a written list of the preliminary findings with the agency at the exit conference.

(g)iiAfter a survey of a home and community support services agency by the department, the department shall provide to the chief executive officer of the agency:

(1)iispecific and timely written notice of the official [preliminary] findings of the survey, including:

(A)iithe specific nature of the survey;

(B)iiany alleged violations of a specific statute or rule;

(C)iithe specific nature of any finding regarding an alleged violation or deficiency; and

(D)iiif a deficiency is alleged, the severity of the deficiency;

(2)iiinformation on the identity, including the signature, of each department representative conducting, reviewing, or approving the results of the survey and the date on which the department representative acted on the matter; and

(3)iiif requested by the agency, copies of all documents relating to the survey maintained by the department or provided by the department to any other state or federal agency that are not confidential under state law.

(g-1)iiIf the department or the department's authorized representative discovers any additional violations during the review of field notes or preparation of the official statement of deficiencies for a home and community support services agency, the department or the department's representative shall conduct an additional exit conference regarding the additional violations. The additional exit conference must be held in person and may not be held over the telephone, by e-mail, or by facsimile transmission.

SECTIONi2.iiSection 242.0336, Health and Safety Code, is amended by amending Subsections (a) and (c) through (g) and adding Subsections (b-1) through (b-5), (c-1), and (d-1) to read as follows:

(a)iiFor purposes of this section, a temporary change of ownership license is a temporary 90-day license issued to an applicant who proposes to become the new operator of an institution existing on the date the application is filed.

(b-1)iiExcept as provided by Subsection (b-2), the department may not issue a temporary change of ownership license before the 31st day after the date the department has received both:

(1)iithe application for the license; and

(2)iinotification, in writing, of the intent of the institution's existing license holder to transfer operation of the institution to the applicant beginning on a date specified by the applicant.

Saturday, May 26, 2007 SENATE JOURNAL 4723


(b-2)iiNotwithstanding Section 242.0335, the department shall establish criteria under which the department may waive the 30-day requirement or the notification requirement of Subsection (b-1). The criteria may include the occurrence of forcible entry and detainer, death, or divorce or other events that affect the ownership of the institution by the existing license holder.

(b-3)iiAfter receipt of an application or written notification described by Subsection (b-1), the department may place a hold on payments to the existing license holder in an amount not to exceed the average of the monthly vendor payments paid to the facility, as determined by the department. The department shall release funds to the previous license holder not later than the 120th day after the date on which the final reporting requirements are met and any resulting informal reviews or formal appeals are resolved. The department may reduce the amount of funds released to the previous license holder by the amount owed to the department or the Health and Human Services Commission under the previous license holder's Medicaid contract or license.

(b-4)iiThe executive commissioner of the Health and Human Services Commission shall adopt rules for the department that define a change of ownership. In adopting the rules, the executive commissioner shall consider:

(1)iithe proportion of ownership interest that is being transferred to another person;

(2)iithe addition or removal of a stockholder, partner, owner, or other controlling person;

(3)iithe reorganization of the license holder into a different type of business entity; and

(4)iithe death or incapacity of a stockholder, partner, or owner.

(b-5)iiThe executive commissioner may adopt rules for the department that require a license holder to notify the department of any change, including a change that is not a change of ownership, as that term is defined by rules adopted under Subsection (b-4). Nothing in this section prevents the department from acting under Section 242.061 or any other provision of this chapter.

(c)iiThe department shall issue or deny a temporary change of ownership license not later than the 31st [30th] day after the date of receipt of the completed application. The effective date of a temporary change of ownership license issued under this section is the date requested in the application unless:

(1)iithe department does not receive the application and written notification described by Subsection (b-1) at least 30 days before that date; and

(2)iino waiver under Subsection (b-2) applies.

(c-1)iiIf the department does not receive the application and written notification required by Subsection (b-1) at least 30 days before the effective date requested in the application and Subsection (b-2) does not apply, the effective date of the temporary change of ownership license is the 31st day after the date the department receives both the application and the notification.

(d)iiExcept as provided in Subsection (d-1), after [After] the department issues a temporary change of ownership license to the applicant, the department shall conduct an inspection or survey of the nursing facility under Section 242.043 as soon as reasonably possible. During the period between the issuance of the temporary license

4724 80th Legislature — Regular Session 68th Day


and the inspection or survey of the nursing facility or desk review under Subsection (d-1), the department may not place a hold on vendor payments to the temporary license holder.

(d-1)iiThe department shall establish criteria under which a desk review of the facility's compliance with applicable requirements may be substituted for the on-site inspection or survey under Subsection (d).

(e)iiAfter conducting an inspection or survey under Subsection (d) or a desk review under Subsection (d-1), the department shall issue a license under Section 242.033 to the temporary change of ownership license holder if the nursing facility passes the desk review, inspection, or survey and the applicant meets the requirements of Section 242.033. If the nursing facility fails to pass the desk review, inspection, or survey or the applicant fails to meet the requirements of Section 242.033, the department may:

(1)iiplace a hold on vendor payments to the temporary change of ownership license holder; and

(2)iitake any other action authorized under this chapter.

(f)iiIf the applicant meets the requirements of Section 242.033 and the nursing facility passes a desk review, [an] initial inspection, or [a] subsequent inspection before the temporary change of ownership license expires, the license issued under Section 242.033 is considered effective on the date the department determines under Subsection (c) or (c-1) [requested in the application for a temporary change of ownership].

(g)iiA temporary change of ownership license issued under Subsection (b) expires on the 90th [91st] day after the effective date established under Subsection (c) or (c-1) [date the license was issued].

SECTIONi3.iiSubsections (b) and (c), Section 242.0445, Health and Safety Code, are amended to read as follows:

(b)iiAt the conclusion of an inspection, survey, or investigation under Section 242.043 or 242.044, the department or the department's representative conducting the inspection, survey, or investigation shall discuss the violations with the facility's management in an exit conference. The department or the department's representative shall leave a written list of the violations with the facility at the time of the exit conference. If the department or the department's representative discovers any additional violations during the review of field notes or preparation of the official final list, the department or the department's representative shall give the facility an additional exit conference regarding the additional violations. An additional exit conference must be held in person and may not be held by telephone, e-mail, or facsimile transmission.

(c)iiThe facility shall submit a plan to correct the violations to the regional director not later than the 10th working day after the date the facility receives the final official statement of violations.

SECTIONi4.iiSection 247.0271, Health and Safety Code, is amended by amending Subsection (c) and adding Subsection (d) to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4725


(c)iiIf, after the initial exit conference, additional violations are cited, the inspector shall conduct an additional exit conference regarding the newly identified violations. An additional exit conference must be held in person and may not be held by telephone, e-mail, or facsimile transmission.

(d)iiThe assisted living facility shall submit a plan of correction to the regional director with supervisory authority over the inspector not later than the 10th working day after the date the facility receives the final official statement of violations.

SECTIONi5.iiSection 247.050, Health and Safety Code, is amended by adding Subsection (d) to read as follows:

(d)iiThe department shall permanently retain at least one copy or one electronic source of information pertaining to complaints and investigations of unlicensed assisted living facilities used to maintain a registry as required under Subsection (a)(1) and used to prepare a report under Subsection (a)(2).

SECTIONi6.iiSubsections (b) and (c), Section 252.044, Health and Safety Code, are amended to read as follows:

(b)iiAt the conclusion of an inspection, survey, or investigation under this chapter, the department or the department's representative conducting the inspection, survey, or investigation shall discuss the violations with the facility's management in an exit conference. The department or the department's representative shall leave a written list of the violations with the facility and the person designated by the facility to receive notice under Section 252.066 at the time of the exit conference. If the department or the department's representative discovers any additional violations during the review of field notes or preparation of the official final list, the department or the department's representative shall give the facility an additional exit conference regarding the additional violations. An additional exit conference must be held in person and may not be held by telephone, e-mail, or facsimile transmission.

(c)iiThe facility shall submit a plan to correct the violations to the regional director not later than the 10th working day after the date the facility receives the final official statement of violations.

SECTIONi7.ii(a) As soon as practicable after the effective date of this Act, the executive commissioner of the Health and Human Services Commission shall adopt the rules required by Section 242.0336, Health and Safety Code, as amended by this Act.

(b)iiThe changes in law made by this Act to Section 242.0336, Health and Safety Code, apply only to a temporary change of ownership license application received by the Department of Aging and Disability Services on or after September 1, 2007. An application received by the department before September 1, 2007, is governed by the law in effect at the time the application is received, and the former law is continued in effect for that purpose.

SECTIONi8.iiThis Act takes effect September 1, 2007.

The Conference Committee Report on SBi344 was filed with the Secretary of the Senate.

4726 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2207

Senator Watson submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2207 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

WATSON GALLEGO
HARRIS DARBY
HINOJOSA SOLOMONS
CARONA MARTINEZ
STRAUS
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2207 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3693

Senator Fraser submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3693 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

FRASER STRAUS
ESTES CRABB
SELIGER ANCHIA
SHAPIRO P. KING
VANiDEiPUTTE TALTON
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3693 was filed with the Secretary of the Senate.

Saturday, May 26, 2007 SENATE JOURNAL 4727


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2034

Senator Shapiro submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2034 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

SHAPIRO ENGLAND
WILLIAMS MCREYNOLDS
HINOJOSA MADDEN
URESTI OLIVEIRA
HAGGERTY
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2034 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1481

Senator Uresti submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi1481 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

URESTI CASTRO
HINOJOSA RODRIGUEZ
WATSON CHAVEZ
HARRIS GATTIS
RIDDLE
On the part of the Senate On the part of the House

The Conference Committee Report on HBi1481 was filed with the Secretary of the Senate.

4728 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

SENATE BILL 199

Senator Nelson submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi199 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

NELSON ROSE
DEUELL J. DAVIS
SHAPIRO PARKER
SHAPLEIGH PIERSON
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to certain convictions barring employment at certain facilities serving the elderly or persons with disabilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 250.006, Health and Safety Code, is amended by amending Subsections (a) and (b) and adding Subsection (d) to read as follows:

(a)iiA person for whom the facility is entitled to obtain criminal history record information may not be employed in a facility if the person has been convicted of an offense listed in this subsection:

(1)iian offense under Chapter 19, Penal Code (criminal homicide);

(2)iian offense under Chapter 20, Penal Code (kidnapping and unlawful restraint);

(3)iian offense under Section 21.11, Penal Code (indecency with a child);

(4)iian offense under Section 22.011, Penal Code (sexual assault);

(5)iian offense under Section 22.02, Penal Code (aggravated assault);

(6)iian offense under Section 22.04, Penal Code (injury to a child, elderly individual, or disabled individual);

(7)iian offense under Section 22.041, Penal Code (abandoning or endangering child);

(8)iian offense under Section 22.08, Penal Code (aiding suicide);

(9)iian offense under Section 25.031, Penal Code (agreement to abduct from custody);

(10)iian offense under Section 25.08, Penal Code (sale or purchase of a child);

Saturday, May 26, 2007 SENATE JOURNAL 4729


(11)iian offense under Section 28.02, Penal Code (arson);

(12)iian offense under Section 29.02, Penal Code (robbery);

(13)iian offense under Section 29.03, Penal Code (aggravated robbery); [or]

(14)iian offense under Section 21.08, Penal Code (indecent exposure);

(15)iian offense under Section 21.12, Penal Code (improper relationship between educator and student);

(16)iian offense under Section 21.15, Penal Code (improper photography or visual recording);

(17)iian offense under Section 22.05, Penal Code (deadly conduct);

(18)iian offense under Section 22.021, Penal Code (aggravated sexual assault);

(19)iian offense under Section 22.07, Penal Code (terroristic threat);

(20)iian offense under Section 33.021, Penal Code (online solicitation of a minor);

(21)iian offense under Section 34.02, Penal Code (money laundering);

(22)iian offense under Section 35A.02, Penal Code (Medicaid fraud);

(23)iian offense under Section 42.09, Penal Code (cruelty to animals); or

(24)iia conviction under the laws of another state, federal law, or the Uniform Code of Military Justice for an offense containing elements that are substantially similar to the elements of an offense listed by this subsection [under Subdivisions (1)-(13)].

(b)iiA person may not be employed in a position the duties of which involve direct contact with a consumer in a facility before the fifth anniversary of the date the person is convicted of:

(1)iian offense under Section 22.01, Penal Code (assault), that is punishable as a Class A misdemeanor or as a felony;

(2)iian offense under Section 30.02, Penal Code (burglary);

(3)iian offense under Chapter 31, Penal Code (theft), that is punishable as a felony;

(4)iian offense under Section 32.45, Penal Code (misapplication of fiduciary property or property of a financial institution), that is punishable as a Class A misdemeanor or a felony; [or]

(5)iian offense under Section 32.46, Penal Code (securing execution of a document by deception), that is punishable as a Class A misdemeanor or a felony;

(6)iian offense under Section 37.12, Penal Code (false identification as peace officer); or

(7)iian offense under Section 42.01(a)(7), (8), or (9), Penal Code (disorderly conduct).

(d)iiFor purposes of this section, a person who is placed on deferred adjudication community supervision for an offense listed in this section, successfully completes the period of deferred adjudication community supervision, and receives a dismissal and discharge in accordance with Section 5(c), Article 42.12, Code of Criminal Procedure, is not considered convicted of the offense for which the person received deferred adjudication community supervision.

SECTIONi2.iiThis Act takes effect September 1, 2007.

4730 80th Legislature — Regular Session 68th Day


The Conference Committee Report on SBi199 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1879

Senator Williams submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi1879 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

WILLIAMS HAMILTON
DEUELL CREIGHTON
NELSON FROST
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to the regulation of controlled substances; providing an administrative penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubsection (a), Section 481.064, Health and Safety Code, is amended to read as follows:

(a)iiThe director may charge a nonrefundable fee of not more than $25 before processing an application for annual registration and may charge a late fee of not more than $50 for each application for renewal the department receives after the date the registration expires. The director by rule shall set the amounts [amount] of the fees [fee] at the amounts [amount] that are [is] necessary to cover the cost of administering and enforcing this subchapter. Except as provided by Subsection (b), registrants shall pay the fees to the director. Not later than 60 days before the date the registration expires, the director shall send a renewal notice to the registrant at the last known address of the registrant according to department records.

SECTIONi2.iiSection 481.074, Health and Safety Code, is amended by amending Subsections (b), (d), and (k) and adding Subsection (q) to read as follows:

(b)iiExcept in an emergency as defined by rule of the director or as provided by Subsection (o) or Section 481.075(j) or (m), a person may not dispense or administer a controlled substance listed in Schedule II without the written prescription of a practitioner on an official prescription form that meets the requirements of and is completed by the practitioner in accordance with Section 481.075. In an emergency, a

Saturday, May 26, 2007 SENATE JOURNAL 4731


person may dispense or administer a controlled substance listed in Schedule II on the oral or telephonically communicated prescription of a practitioner. The person who administers or dispenses the substance shall:

(1)iiif the person is a prescribing practitioner or a pharmacist, promptly comply with Subsection (c); or

(2)iiif the person is not a prescribing practitioner or a pharmacist, promptly write the oral or telephonically communicated prescription and include in the written record of the prescription the name, address, department registration number, and Federal Drug Enforcement Administration number of the prescribing practitioner, all information required to be provided by a practitioner under Section 481.075(e)(1), and all information required to be provided by a dispensing pharmacist under Section 481.075(e)(2).

(d)iiExcept as specified in Subsections (e) and (f) [of this section], the director, by rule and in consultation with the Texas Medical Board and the Texas State Board of Pharmacy, shall establish the period after the date on which the prescription is issued that a person may [not] fill a prescription for a controlled substance listed in Schedule II [after the end of the seventh day after the date on which the prescription is issued]. A person may not refill a prescription for a substance listed in Schedule II.

(k)iiA prescription for a controlled substance must show:

(1)iithe quantity of the substance prescribed:

(A)iinumerically, followed by the number written as a word, if the prescription is written; or

(B)iiif the prescription is communicated orally or telephonically, as transcribed by the receiving pharmacist;

(2)iithe date of issue;

(3)iithe name, [and] address, and date of birth or age of the patient or, if the controlled substance is prescribed for an animal, the species of the animal and the name and address of its owner;

(4)iithe name and strength of the controlled substance prescribed;

(5)iithe directions for use of the controlled substance;

(6)iithe intended use of the substance prescribed unless the practitioner determines the furnishing of this information is not in the best interest of the patient; [and]

(7)iithe legibly printed or stamped name, address, Federal Drug Enforcement Administration registration number, and telephone number of the practitioner at the practitioner's usual place of business;

(8)iiif the prescription is handwritten, the signature of the prescribing practitioner; and

(9)iiif the prescribing practitioner is licensed in this state, the practitioner's department registration number.

(q)iiEach dispensing pharmacist shall send all information required by the director, including any information required to complete the Schedule III through V prescription forms, to the director by electronic transfer or another form approved by the director not later than the 15th day after the last day of the month in which the prescription is completely filled.

4732 80th Legislature — Regular Session 68th Day


SECTIONi3.iiSubsections (a) and (c), Section 481.076, Health and Safety Code, are amended to read as follows:

(a)iiThe director may not permit any person to have access to information submitted to the director under Section 481.074(q) or 481.075 except:

(1)iian investigator for the Texas [State Board of] Medical Board [Examiners], the Texas State Board of Podiatric Medical Examiners, the State Board of Dental Examiners, the State Board of Veterinary Medical Examiners, or the Texas State Board of Pharmacy;

(2)iian authorized officer or member of the department engaged in the administration, investigation, or enforcement of this chapter or another law governing illicit drugs in this state or another state; or

(3)iiif the director finds that proper need has been shown to the director:

(A)iia law enforcement or prosecutorial official engaged in the administration, investigation, or enforcement of this chapter or another law governing illicit drugs in this state or another state;

(B)iia pharmacist or practitioner who is a physician, dentist, veterinarian, [or] podiatrist, or advanced practice nurse or physician assistant described by Section 481.002(39)(D) and is inquiring about a [the] recent Schedule II, III, IV, or V prescription history of a particular patient of the practitioner; or

(C)iia pharmacist or practitioner who is inquiring about the person's own dispensing or prescribing activity.

(c)iiThe director by rule shall design and implement a system for submission of information to the director by electronic or other means and for retrieval of information submitted to the director under this section and Sections 481.074 and [Section] 481.075. The director shall use automated information security techniques and devices to preclude improper access to the information. The director shall submit the system design to the Texas State Board of Pharmacy and the Texas [State Board of] Medical Board [Examiners] for review and approval or comment a reasonable time before implementation of the system and shall comply with the comments of those agencies unless it is unreasonable to do so.

SECTIONi4.iiSubsections (a), (b), (c), and (e), Section 481.0761, Health and Safety Code, are amended to read as follows:

(a)iiThe director shall consult with the Texas State Board of Pharmacy and by rule establish and revise as necessary a standardized database format that may be used by a pharmacy to transmit the information required by Sections 481.074(q) and [Section] 481.075(i) to the director electronically or to deliver the information on storage media, including disks, tapes, and cassettes.

(b)iiThe director shall consult with the [Texas] Department of State Health Services, the Texas State Board of Pharmacy, and the Texas [State Board of] Medical Board [Examiners] and by rule may:

(1)iiremove a controlled substance listed in Schedules [Schedule] II through V from the official prescription program, if the director determines that the burden imposed by the program substantially outweighs the risk of diversion of the particular controlled substance; or

Saturday, May 26, 2007 SENATE JOURNAL 4733


(2)iireturn a substance previously removed from Schedules [Schedule] II through V to the official prescription program, if the director determines that the risk of diversion substantially outweighs the burden imposed by the program on the particular controlled substance.

(c)iiThe director by rule may:

(1)iipermit more than one prescription to be administered or dispensed and recorded on one [official] prescription form for a Schedule III through V controlled substance;

(2)iiremove from or return to the official prescription program any aspect of a practitioner's or pharmacist's hospital practice, including administering or dispensing;

(3)iiwaive or delay any requirement relating to the time or manner of reporting;

(4)iiestablish compatibility protocols for electronic data transfer hardware, software, or format;

(5)iiestablish a procedure to control the release of information under Sections 481.074, 481.075, and 481.076; and

(6)iiestablish a minimum level of prescription activity below which a reporting activity may be modified or deleted.

(e)iiIn adopting a rule relating to the electronic transfer of information under this subchapter, the director shall consider the economic impact of the rule on practitioners and pharmacists and, to the extent permitted by law, act to minimize any negative economic impact, including the imposition of costs related to computer hardware or software or to the transfer of information. The director may not adopt a rule relating to the electronic transfer of information under this subchapter that imposes a fee in addition to the fees [fee] authorized by Section 481.064.

SECTIONi5.iiChapter 481, Health and Safety Code, is amended by adding Subchapter H to read as follows:

SUBCHAPTER H. ADMINISTRATIVE PENALTY

Sec.i481.301.iiIMPOSITION OF PENALTY. The department may impose an administrative penalty on a person who violates Section 481.061, 481.066, 481.067, 481.069, 481.074, 481.075, 481.077, 481.0771, 481.078, 481.080, or 481.081 or a rule or order adopted under any of those sections.

Sec.i481.302.iiAMOUNT OF PENALTY. (a)iiThe amount of the penalty may not exceed $1,000 for each violation, and each day a violation continues or occurs is a separate violation for purposes of imposing a penalty. The total amount of the penalty assessed for a violation continuing or occurring on separate days under this subsection may not exceed $20,000.

(b)iiThe amount shall be based on:

(1)iithe seriousness of the violation, including the nature, circumstances, extent, and gravity of the violation;

(2)iithe threat to health or safety caused by the violation;

(3)iithe history of previous violations;

(4)iithe amount necessary to deter a future violation;

(5)iiwhether the violator demonstrated good faith, including when applicable whether the violator made good faith efforts to correct the violation; and

4734 80th Legislature — Regular Session 68th Day


(6)iiany other matter that justice may require.

Sec.i481.303.iiREPORT AND NOTICE OF VIOLATION AND PENALTY. (a)iiIf the department initially determines that a violation occurred, the department shall give written notice of the report to the person by certified mail, registered mail, personal delivery, or another manner of delivery that records the person's receipt of the notice.

(b)iiThe notice must:

(1)iiinclude a brief summary of the alleged violation;

(2)iistate the amount of the recommended penalty; and

(3)iiinform the person of the person's right to a hearing on the occurrence of the violation, the amount of the penalty, or both.

Sec.i481.304.iiPENALTY TO BE PAID OR INFORMAL HEARING REQUESTED. (a)iiBefore the 21st day after the date the person receives notice under Section 481.303, the person in writing may:

(1)iiaccept the determination and recommended penalty; or

(2)iimake a request for an informal hearing held by the department on the occurrence of the violation, the amount of the penalty, or both.

(b)iiAt the conclusion of an informal hearing requested under Subsection (a), the department may modify the amount of the recommended penalty.

(c)iiIf the person accepts the determination and recommended penalty, including any modification of the amount, or if the person fails to timely respond to the notice, the director by order shall approve the determination and impose the recommended penalty.

Sec.i481.305.iiFORMAL HEARING. (a)iiThe person may request a formal hearing only after participating in an informal hearing.

(b)iiThe request must be submitted in writing and received by the department before the 21st day after the date the person is notified of the decision from the informal hearing.

(c)iiIf a timely request for a formal hearing is not received, the director by order shall approve the determination from the informal hearing and impose the recommended penalty.

(d)iiIf the person timely requests a formal hearing, the director shall refer the matter to the State Office of Administrative Hearings, which shall promptly set a hearing date and give written notice of the time and place of the hearing to the director and to the person. An administrative law judge of the State Office of Administrative Hearings shall conduct the hearing.

(e)iiThe administrative law judge shall make findings of fact and conclusions of law and promptly issue to the director a proposal for a decision about the occurrence of the violation and the amount of any proposed penalty.

(f)iiIf a penalty is proposed under Subsection (e), the administrative law judge shall include in the proposal for a decision a finding setting out costs, fees, expenses, and reasonable and necessary attorney's fees incurred by the state in bringing the proceeding. The director may adopt the finding and impose the costs, fees, and expenses on the person as part of the final order entered in the proceeding.

Sec.i481.306.iiDECISION. (a)iiBased on the findings of fact, conclusions of law, and proposal for a decision, the director by order may:

Saturday, May 26, 2007 SENATE JOURNAL 4735


(1)iifind that a violation occurred and impose a penalty; or

(2)iifind that a violation did not occur.

(b)iiThe notice of the director's order under Subsection (a) that is sent to the person in the manner provided by Chapter 2001, Government Code, must include a statement of the right of the person to judicial review of the order.

Sec.i481.307.iiOPTIONS FOLLOWING DECISION: PAY OR APPEAL. Before the 31st day after the date the order under Section 481.306 that imposes an administrative penalty becomes final, the person shall:

(1)iipay the penalty; or

(2)iifile a petition for judicial review of the order contesting the occurrence of the violation, the amount of the penalty, or both.

Sec.i481.308.iiSTAY OF ENFORCEMENT OF PENALTY. (a)iiWithin the period prescribed by Section 481.307, a person who files a petition for judicial review may:

(1)iistay enforcement of the penalty by:

(A)iipaying the penalty to the court for placement in an escrow account; or

(B)iigiving the court a supersedeas bond approved by the court that:

(i)iiis for the amount of the penalty; and

(ii)iiis effective until all judicial review of the order is final; or

(2)iirequest the court to stay enforcement of the penalty by:

(A)iifiling with the court a sworn affidavit of the person stating that the person is financially unable to pay the penalty and is financially unable to give the supersedeas bond; and

(B)iisending a copy of the affidavit to the director by certified mail.

(b)iiFollowing receipt of a copy of an affidavit under Subsection (a)(2), the director may file with the court, before the sixth day after the date of receipt, a contest to the affidavit. The court shall hold a hearing on the facts alleged in the affidavit as soon as practicable and shall stay the enforcement of the penalty on finding that the alleged facts are true. The person who files an affidavit has the burden of proving that the person is financially unable to pay the penalty or to give a supersedeas bond.

Sec.i481.309.iiCOLLECTION OF PENALTY. (a)iiIf the person does not pay the penalty and the enforcement of the penalty is not stayed, the penalty may be collected.

(b)iiThe attorney general may sue to collect the penalty.

Sec.i481.310.iiDECISION BY COURT. (a)iiIf the court sustains the finding that a violation occurred, the court may uphold or reduce the amount of the penalty and order the person to pay the full or reduced amount of the penalty.

(b)iiIf the court does not sustain the finding that a violation occurred, the court shall order that a penalty is not owed.

Sec.i481.311.iiREMITTANCE OF PENALTY AND INTEREST. (a)iiIf the person paid the penalty and if the amount of the penalty is reduced or the penalty is not upheld by the court, the court shall order, when the court's judgment becomes final, that the appropriate amount plus accrued interest be remitted to the person before the 31st day after the date that the judgment of the court becomes final.

(b)iiThe interest accrues at the rate charged on loans to depository institutions by the New York Federal Reserve Bank.

4736 80th Legislature — Regular Session 68th Day


(c)iiThe interest shall be paid for the period beginning on the date the penalty is paid and ending on the date the penalty is remitted.

Sec.i481.312.iiRELEASE OF BOND. (a)iiIf the person gave a supersedeas bond and the penalty is not upheld by the court, the court shall order, when the court's judgment becomes final, the release of the bond.

(b)iiIf the person gave a supersedeas bond and the amount of the penalty is reduced, the court shall order the release of the bond after the person pays the reduced amount.

Sec.i481.313.iiADMINISTRATIVE PROCEDURE. A proceeding to impose the penalty is considered to be a contested case under Chapter 2001, Government Code.

Sec.i481.314.iiDISPOSITION OF PENALTY. The department shall send any amount collected as a penalty under this subchapter to the comptroller for deposit to the credit of the general revenue fund.

SECTIONi6.iiChapter 107, Occupations Code, is amended by adding Subchapter E to read as follows:

SUBCHAPTER E. PAIN TREATMENT REVIEW COMMITTEE

Sec.i107.201.iiPAIN TREATMENT REVIEW COMMITTEE. (a)iiThe following individuals shall be appointed as a review committee on pain treatment:

(1)iithe attorney general or the attorney general's designee;

(2)iia physician who practices at a public hospital in this state;

(3)iia physician who practices at a private hospital in this state;

(4)iia physician who practices in this state as a psychiatrist specializing in the treatment of addictive diseases;

(5)iia probate court judge licensed to practice law in this state;

(6)iia member of the governing board of the American Cancer Society, Texas Division, or the member's designee;

(7)iia member of the governing board of the Texas Medical Association or the member's designee;

(8)iia member of the governing board of the Texas Nurses Association or the member's designee;

(9)iian officer of a public hospital in this state who is a member of the governing board of the Texas Hospital Association or the member's designee;

(10)iian officer of a private hospital in this state who is a member of the governing board of the Texas Hospital Association or the member's designee; and

(11)iia public member who is a resident of this state.

(b)iiThe lieutenant governor and the speaker of the house of representatives shall each appoint five of the members described by Subsections (a)(2) through (11).

(c)iiThe following individuals serve on the committee as nonvoting resource members and are appointed by the executive director of the agency the member represents:

(1)iia pharmacist member of the Texas State Board of Pharmacy;

(2)iia physician member of the Texas Medical Board;

(3)iia nurse member of the Board of Nurse Examiners;

(4)iia representative of the Department of Aging and Disability Services; and

(5)iia representative of the narcotics regulatory programs of the Department of Public Safety.

Saturday, May 26, 2007 SENATE JOURNAL 4737


(d)iiThe committee shall study the relevant provisions in the laws of this state that relate to the administration of prescription medication, controlled substances, and the needs of patients for effective pain control and management. The committee shall examine how the following statutes affect public health needs, the professional medical community, and persons affected by acute, chronic, or end-of-life pain:

(1)iithis chapter;

(2)iiSubtitles B, E, I, and J of this title; and

(3)iiChapter 481, Health and Safety Code.

(e)iiThe committee shall meet at least once every three months.

(f)iiNot later than September 1, 2008, the committee shall report any changes recommended to the statutes examined under Subsection (d) to the lieutenant governor, the speaker of the house of representatives, and the appropriate standing committees in the senate and the house of representatives that have jurisdiction over the issues studied by the committee.

(g)iiThis section expires July 1, 2009.

SECTIONi7.ii(a)iiAn advisory committee is created to advise the Department of Public Safety of the State of Texas on the implementation of this Act.

(b)iiThe advisory committee is composed of:

(1)iithe public safety director of the Department of Public Safety of the State of Texas or the director's designee;

(2)iia physician appointed by the governor;

(3)iia pharmacist appointed by the governor;

(4)iia physician appointed by the lieutenant governor;

(5)iia pharmacist appointed by the lieutenant governor;

(6)iia physician appointed by the governor from a list of names submitted by the speaker of the house of representatives;

(7)iia pharmacist appointed by the governor from a list of names submitted by the speaker of the house of representatives; and

(8)iione member from each of the following boards:

(A)iiTexas Medical Board;

(B)iiTexas State Board of Pharmacy;

(C)iiState Board of Dental Examiners; and

(D)iiBoard of Nurse Examiners.

(c)iiThe public safety director or the director's designee is the presiding officer of the advisory committee. The committee shall meet at the call of the presiding officer or at the request of any three members other than the presiding officer.

(d)iiThe advisory committee shall:

(1)iidevelop recommendations regarding the improvement of the official prescription program established by Section 481.075, Health and Safety Code;

(2)iidevelop recommendations regarding the implementation of an electronic controlled substance monitoring system that would be used for prescriptions of controlled substances listed in Schedules II through V as established under Subchapter B, Chapter 481, Health and Safety Code;

4738 80th Legislature — Regular Session 68th Day


(3)iidevelop recommendations as to which data should be provided to the Department of Public Safety of the State of Texas to support a controlled substance monitoring system recommended under Subdivision (2) of this subsection, including provider identification information;

(4)iimonitor and develop recommendations regarding the implementation and enforcement of a controlled substance monitoring system recommended under Subdivision (2) of this subsection;

(5)iidevelop recommended procedures necessary for real-time point-of-service access for a practitioner authorized to prescribe or dispense controlled substances listed in Schedules II through V so that the practitioner may obtain:

(A)iithe prescription history for a particular patient; or

(B)iithe practitioner's own dispensing or prescribing activity; and

(6)iidevelop recommended procedures that should be followed by the Department of Public Safety of the State of Texas and the applicable licensing authority of this state, another state, or the United States when:

(A)iithe department shares information related to diversion of controlled substances with a licensing authority for the purpose of licensing enforcement; or

(B)iia licensing authority shares information related to diversion of controlled substances with the department for the purpose of criminal enforcement.

(e)iiThe public safety director shall report the recommendations developed under Subsection (d) of this section to the governor, lieutenant governor, speaker of the house of representatives, and appropriate committees of the senate and the house not later than July 1, 2008.

(f)iiThis section expires and the advisory committee is abolished on Septemberi1, 2009.

SECTIONi8.ii(a)iiThe Department of Public Safety of the State of Texas, Texas Medical Board, Texas State Board of Pharmacy, State Board of Dental Examiners, and Board of Nurse Examiners shall submit to the presiding officers of the Senate Committee on Health and Human Services and the House Committee on Public Health a report that details the number and type of actions relating to the prosecution of violations of Chapter 481, Health and Safety Code, as amended by this Act.

(b)iiEach agency shall submit its initial report under Subsection (a) of this section not later than November 1, 2007. Each agency shall submit an update of its initial report not later than May 1 and November 1 of each year.

(c)iiThis section expires November 1, 2011.

SECTIONi9.iiThe public safety director of the Department of Public Safety of the State of Texas shall adopt any rules necessary to administer and enforce Subchapter H, Chapter 481, Health and Safety Code, as added by this Act, not later than September 1, 2007, except that if this section does not take effect before that date, the public safety director shall adopt the rules as soon as practicable after that date.

SECTIONi10.ii(a)iiExcept as provided by Subsections (b), (c), and (d) of this section, this Act takes effect September 1, 2007.

Saturday, May 26, 2007 SENATE JOURNAL 4739


(b)iiSection 9 of this Act takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, Section 9 of this Act takes effect September 1, 2007.

(c)iiExcept as otherwise provided by Subsection (d) of this section, the changes in law made by this Act in amending Subsection (k), Section 481.074, and Section 481.076, Health and Safety Code, and in adding Subsection (q), Section 481.074 of that code, take effect September 1, 2008. The public safety director of the Department of Public Safety of the State of Texas shall adopt any rules necessary to administer and enforce the changes in law made by those provisions not later than September 1, 2008.

(d)iiThe change in law made by this Act in amending Subsections (b) and (k), Section 481.074, Health and Safety Code, to require the use of registration numbers issued by the Department of Public Safety of the State of Texas takes effect only after the department establishes a means by which pharmacies are able to electronically access and verify the accuracy of the registration numbers.

The Conference Committee Report on SBi1879 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 765

Senator Eltife submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi765 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

ELTIFE FROST
AVERITT R. COOK
ESTES HEFLIN
WATSON KOLKHORST
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to the use of municipal hotel occupancy taxes for the enhancement and upgrading of sports facilities and fields by certain municipalities.

4740 80th Legislature — Regular Session 68th Day


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubsection (a), Section 351.101, Tax Code, is amended to read as follows:

(a)iiRevenue from the municipal hotel occupancy tax may be used only to promote tourism and the convention and hotel industry, and that use is limited to the following:

(1)iithe acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation, and maintenance of convention center facilities or visitor information centers, or both;

(2)iithe furnishing of facilities, personnel, and materials for the registration of convention delegates or registrants;

(3)iiadvertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity;

(4)iithe encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms;

(5)iihistorical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums:

(A)iiat or in the immediate vicinity of convention center facilities or visitor information centers; or

(B)iilocated elsewhere in the municipality or its vicinity that would be frequented by tourists and convention delegates;

(6)iifor a municipality located in a county with a population of one million or less, expenses, including promotion expenses, directly related to a sporting event in which the majority of participants are tourists who substantially increase economic activity at hotels and motels within the municipality or its vicinity; and

(7)iisubject to Section 351.1076, the promotion of tourism by the enhancement and upgrading of existing sports facilities or fields, including facilities or fields for baseball, softball, soccer, and flag football, if:

(A)iithe municipality owns the facilities or fields;

(B)iithe municipality:

(i)iihas a population of 80,000 or more and is located in a county that has a population of 350,000 or less; [or]

(ii)iihas a population of at least 65,000 but not more than 70,000 and is located in a county that has a population of 155,000 or less; or

(iii)iihas a population of at least 34,000 but not more than 36,000 and is located in a county that has a population of 90,000 or less; and

(C)iithe sports facilities and fields have been used, in the preceding calendar year, a combined total of more than 10 times for district, state, regional, or national sports tournaments.

Saturday, May 26, 2007 SENATE JOURNAL 4741


SECTIONi2.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

The Conference Committee Report on SBi765 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 899

Senator Deuell submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi899 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

DEUELL W. SMITH
HINOJOSA CALLEGARI
NICHOLS ESCOBAR
VAN DE PUTTE MACIAS
WEST
On the part of the Senate On the part of the House

The Conference Committee Report on HBi899 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1266

Senator Brimer submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

4742 80th Legislature — Regular Session 68th Day


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi1266 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

BRIMER KRUSEE
CARONA HAGGERTY
HARRIS HILL
WATSON PHILLIPS
WILLIAMS PICKETT
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to pass-through financing and the designation and operation of transportation reinvestment zones.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 222.104, Transportation Code, is amended by adding Subsection (d-1) and amending Subsection (e) to read as follows:

(d-1)iiUnless there is an insufficient number of approved proposals for projects to be developed under an agreement providing for the payment of pass-through tolls, in any state fiscal year that begins on or after September 1, 2007, the amount the department agrees to pay under agreements entered into under this section as reimbursement to a public or private entity for project costs may not be less than the yearly average of such amounts from the date of the creation by the commission of the pass-through toll program. This subsection expires September 1, 2009.

(e)iiThe department may use any available funds for the purpose of making a pass-through toll payment under this section except funds derived from the issuance of bonds under Section 201.943.

SECTIONi2.iiSubchapter E, Chapter 222, Transportation Code, is amended by adding Sections 222.105, 222.106, and 222.107 to read as follows:

Sec.i222.105.iiPURPOSES. The purposes of Sections 222.106 and 222.107 are to:

(1)iipromote public safety;

(2)iifacilitate the development or redevelopment of property;

(3)iifacilitate the movement of traffic; and

(4)iienhance a local entity's ability to sponsor a project authorized under Section 222.104.

Sec.i222.106.iiMUNICIPAL TRANSPORTATION REINVESTMENT ZONES. (a)iiIn this section:

(1)iithe amount of a municipality's tax increment for a year is the amount of ad valorem taxes levied and collected by the municipality for that year on the captured appraised value of real property taxable by the municipality and located in a transportation reinvestment zone under this section;

Saturday, May 26, 2007 SENATE JOURNAL 4743


(2)iithe captured appraised value of real property taxable by a municipality for a year is the total appraised value of all real property taxable by the municipality and located in a transportation reinvestment zone for that year less the tax increment base of the municipality; and

(3)iithe tax increment base of a municipality is the total appraised value of all real property taxable by the municipality and located in a transportation reinvestment zone for the year in which the zone was designated under this section.

(b)iiThis section applies only to a municipality the governing body of which intends to enter into an agreement with the department under Section 222.104.

(c)iiIf the governing body determines an area to be unproductive and underdeveloped and that action under this section will further the purposes stated in Section 222.105, the governing body of the municipality by ordinance may designate a contiguous geographic area in the jurisdiction of the municipality to be a transportation reinvestment zone to promote a transportation project described by Section 222.104 that cultivates development or redevelopment of the area.

(d)iiThe governing body must comply with all applicable laws in the application of this chapter.

(e)iiNot later than the 30th day before the date the governing body of the municipality proposes to adopt an ordinance designating an area as a transportation reinvestment zone under this section, the governing body must hold a public hearing on the designation of the zone and its benefits to the municipality and to property in the proposed zone. At the hearing an interested person may speak for or against the creation of the zone or its boundaries. Not later than the seventh day before the date of the hearing, notice of the hearing and the intent to create the zone must be published in a newspaper having general circulation in the municipality.

(f)iiCompliance with the requirements of this section constitutes designation of an area as a transportation reinvestment zone without further hearings or other procedural requirements.

(g)iiThe ordinance designating an area as a transportation reinvestment zone must:

(1)iidescribe the boundaries of the zone with sufficient definiteness to identify with ordinary and reasonable certainty the territory included in the zone;

(2)iiprovide that the zone takes effect immediately on passage of the ordinance;

(3)iiassign a name to the zone for identification, with the first zone designated by a municipality designated as "Transportation Reinvestment Zone Number One, (City or Town, as applicable) of (name of municipality)," and subsequently designated zones assigned names in the same form, numbered consecutively in the order of their designation;

(4)iiestablish an ad valorem tax increment account for the zone; and

(5)iicontain findings that promotion of the transportation project will cultivate development or redevelopment of the zone.

(h)iiFrom taxes collected on property in a zone, the municipality shall pay into the tax increment account for the zone an amount equal to the tax increment produced by the municipality.

4744 80th Legislature — Regular Session 68th Day


(i)iiMoney deposited to a tax increment account must be used to fund projects authorized under Section 222.104, including the repayment of amounts owed under an agreement entered into under that section.

(j)iiExcept as provided by Subsection (k), a transportation reinvestment zone terminates on December 31 of the year in which the municipality complies with a contractual requirement, if any, that included the pledge of money deposited to a tax increment account or the repayment of money owed under the agreement under Section 222.104 in connection with which the zone was designated.

(k)iiA transportation reinvestment zone terminates on December 31 of the 10th year after the year the zone was designated, if before that date the municipality has not used the zone for the purpose for which it was designated.

(l)iiAny surplus remaining on termination of a zone may be used for transportation projects of the municipality in or outside of the zone.

Sec.i222.107.iiCOUNTY TRANSPORTATION REINVESTMENT ZONES; TAX ABATEMENTS; ROAD UTILITY DISTRICTS. (a)iiIn this section:

(1)iithe amount of a county's tax increment for a year is the amount of ad valorem taxes levied and collected by the county for that year on the captured appraised value of real property taxable by the county and located in a transportation reinvestment zone under this section;

(2)iithe captured appraised value of real property taxable by a county for a year is the total appraised value of all real property taxable by the county and located in a transportation reinvestment zone for that year less the tax increment base of the county; and

(3)iithe tax increment base of a county is the total appraised value of all real property taxable by the county and located in a transportation reinvestment zone for the year in which the zone was designated under this section.

(b)iiThis section applies only to a county the commissioners court of which intends to enter into a pass-through toll agreement with the department under Section 222.104.

(c)iiThe commissioners court of the county, after determining that an area is unproductive and underdeveloped and that action under this section would further the purposes described by Section 222.105, by order or resolution may designate a contiguous geographic area in the jurisdiction of the county to be a transportation reinvestment zone to promote a transportation project described by Section 222.104 that cultivates development or redevelopment of the area and for the purpose of abating ad valorem taxes imposed by the county on real property located in the zone.

(d)iiThe commissioners court must comply with all applicable laws in the application of this chapter.

(e)iiNot later than the 30th day before the date the commissioners court proposes to designate an area as a transportation reinvestment zone under this section, the commissioners court must hold a public hearing on the creation of the zone, its benefits to the county and to property in the proposed zone, and the abatement of ad valorem taxes imposed by the county on real property located in the zone. At the hearing an interested person may speak for or against the designation of the zone, its boundaries, or the abatement of county taxes on real property in the zone. Not later

Saturday, May 26, 2007 SENATE JOURNAL 4745


than the seventh day before the date of the hearing, notice of the hearing and the intent to create a zone must be published in a newspaper having general circulation in the county.

(f)iiThe order or resolution designating an area as a transportation reinvestment zone must:

(1)iidescribe the boundaries of the zone with sufficient definiteness to identify with ordinary and reasonable certainty the territory included in the zone;

(2)iiprovide that the zone takes effect immediately on adoption of the order or resolution; and

(3)iiassign a name to the zone for identification, with the first zone designated by a county designated as "Transportation Reinvestment Zone Number One, County of (name of county)," and subsequently designated zones assigned names in the same form numbered consecutively in the order of their designation.

(g)iiCompliance with the requirements of this section constitutes designation of an area as a transportation reinvestment zone without further hearings or other procedural requirements.

(h)iiThe commissioners court by order or resolution may enter into an agreement with the owner of any real property located in the transportation reinvestment zone to abate a portion of the ad valorem taxes imposed by the county on the owner's property. All abatements granted by the commissioners court in a transportation reinvestment zone must be equal in rate. In the alternative, the commissioners court by order or resolution may elect to abate a portion of the ad valorem taxes imposed by the county on all real property located in the zone. In any ad valorem tax year, the total amount of the taxes abated under this section may not exceed the amount calculated under Subsection (a)(1) for that year.

(i)iiTo assist the county in developing a project authorized under Section 222.104, if authorized by the commission under Chapter 441, a road utility district may be formed under that chapter that has the same boundaries as a transportation reinvestment zone created under this section.

(j)iiIn any ad valorem tax year, a road utility district formed as provided by Subsection (i) may impose taxes on property in the district at a rate that when applied to the property in the district would impose taxes in an amount equal to the amount of taxes abated by the commissioners court of the county under Subsection (h). Notwithstanding Section 441.192(a), an election is not required to approve the imposition of the taxes.

(k)iiA road utility district formed as provided by Subsection (i) may enter into an agreement with the county to assume the obligation, if any, of the county to fund a project under Section 222.104 or to repay funds owed to the department under Section 222.104. Any amount paid for this purpose is considered to be an operating expense of the district. Any taxes collected by the district that are not paid for this purpose may be used for any district purpose.

(l)iiExcept as provided by Subsection (m), a tax abatement agreement entered into under Subsection (h), or an order or resolution on the abatement of taxes under that subsection, terminates on December 31 of the year in which the county completes any contractual requirement that included the pledge of money collected under this section.

4746 80th Legislature — Regular Session 68th Day


(m)iiA transportation reinvestment zone terminates on December 31 of the 10th year after the year the zone was designated, if before that date the county has not used the zone for the purpose for which it was designated.

SECTIONi3.iiThis Act takes effect September 1, 2007.

The Conference Committee Report on SBi1266 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 945

Senator Hinojosa submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi945 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

HINOJOSA HERRERO
CARONA BRANCH
DUNCAN EISSLER
JANEK HOCHBERG
LUCIO ZEDLER
On the part of the Senate On the part of the House

The Conference Committee Report on HBi945 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3613

Senator Deuell submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3613 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

Saturday, May 26, 2007 SENATE JOURNAL 4747


DEUELL LATHAM
ELTIFE DRIVER
SELIGER ORTIZ
HINOJOSA O'DAY
VO
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3613 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 568

Senator Harris submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi568 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

HARRIS PUENTE
BRIMER GEREN
CARONA PARKER
WATSON TURNER
WENTWORTH
On the part of the Senate On the part of the House

The Conference Committee Report on HBi568 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3249

Senator Brimer submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

4748 80th Legislature — Regular Session 68th Day


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3249 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

BRIMER TRUITT
WHITMIRE FLYNN
HEGAR KOLKHORST
DEUELL B. COOK
HARRIS MCCLENDON
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3249 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1638

Senator Jackson submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi1638 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

JACKSON TAYLOR
JANEK MACIAS
BRIMER EILAND
HEGAR MARTINEZ
WILLIAMS MURPHY
On the part of the Senate On the part of the House

The Conference Committee Report on HBi1638 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2819

Senator Jackson submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Saturday, May 26, 2007 SENATE JOURNAL 4749


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2819 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

JACKSON RITTER
ESTES R. COOK
HINOJOSA HERRERO
LUCIO ESCOBAR
ORTIZ
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2819 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2833

Senator Seliger submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2833 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

SELIGER DRIVER
DEUELL BONNEN
HEGAR LATHAM
VANiDEiPUTTE TAYLOR
WILLIAMS WEST
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2833 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3674

Senator Jackson submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

4750 80th Legislature — Regular Session 68th Day


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3674 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

JACKSON J. DAVIS
HARRIS GONZALES
DEUELL HOPSON
NORIEGA
TAYLOR
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3674 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 101

Senator Shapiro submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi101 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

SHAPIRO MORRISON
NELSON WOOLLEY
ZAFFIRINI BRANCH
JANEK D. HOWARD
ELLIS
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED

AN ACT

relating to limitations on the automatic admission of undergraduate students to general academic teaching institutions and to fees charged to certain admitted students.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSections 51.803 and 51.807, Education Code, are amended to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4751


Sec.i51.803.iiAUTOMATIC ADMISSION: ALL INSTITUTIONS. (a)iiSubject to Subsection (c), each [Each] general academic teaching institution shall admit an applicant for admission to the institution as an undergraduate student if the applicant graduated with a grade point average in the top 10 percent of the student's high school graduating class in one of the two school years preceding the academic year for which the applicant is applying for admission and:

(1)iithe applicant graduated from a public or private high school in this state accredited by a generally recognized accrediting organization or from a high school operated by the United States Department of Defense;

(2)iithe applicant completed the curriculum requirements established under Section 28.025 for the recommended or advanced high school program, or an equivalent curriculum at a high school to which that section does not apply; and

(3)ii[.iiTo qualify for admission under this section, an applicant must submit an application before the expiration of any application filing deadline established by the institution and,] if the applicant graduated from a high school operated by the United States Department of Defense, the applicant is [must be] a Texas resident under Section 54.052 or is [be] entitled to pay tuition fees at the rate provided for Texas residents under Section 54.058(d) for the term or semester to which admitted.

(b)iiTo qualify for admission under this section, an applicant must submit an application before the expiration of any application filing deadline established by the institution.

(c)iiBeginning with admissions for the 2009-2010 academic year, a general academic teaching institution is not required to admit under Subsection (a) more than 60 percent of the institution's first-time resident undergraduate students in an academic year. If the number of applicants who qualify for automatic admission to a general academic teaching institution under Subsection (a) exceeds 60 percent of the institution's enrollment capacity designated for first-time resident undergraduate students, the institution may elect to offer admission to those applicants as provided by this subsection and not as otherwise required by Subsection (a). If the institution elects to offer admission under this subsection, the institution shall offer admission to those applicants by percentile rank according to class standing based on grade point average, beginning with the top percentile rank, until the applicants qualified under Subsection (a) have been offered admission in the number estimated in good faith by the institution as sufficient to fill 50 percent of the institution's enrollment capacity designated for first-time resident undergraduate students, except that the institution must offer admission to all applicants with the same percentile rank. In addition to those admissions, until applicants qualified under Subsection (a) have been offered admission in the number estimated in good faith by the institution as sufficient to fill 60 percent of the designated enrollment capacity described by this subsection, the institution shall offer to applicants qualified for automatic admission under Subsection (a) admission in the same manner as other applicants for admission as first-time undergraduate students in accordance with Section 51.805, except that the institution may not consider applicants other than those applicants qualified under Subsection (a). After the applicants qualified for automatic admission under Subsection (a) have been offered admission under this subsection in the number estimated in good faith as sufficient to fill 60 percent of the designated enrollment capacity described by this

4752 80th Legislature — Regular Session 68th Day


subsection, the institution shall consider any remaining applicants qualified for automatic admission under Subsection (a) in the same manner as other applicants for admission as first-time undergraduate students in accordance with Section 51.805.

(d)iiEach general academic teaching institution that elects to offer admission to applicants as permitted by Subsection (c) shall:

(1)iiadopt a written policy to provide for recruiting and retention efforts directed at underrepresented groups such as racial or ethnic minority groups; and

(2)iiseek from civic and community leaders and organizations input regarding the impact of this section on student access to and academic success in higher education.

(e)iiRegardless of whether a general academic teaching institution elects to offer admission under Subsection (c), if the number of applicants who qualify for automatic admission to the institution under Subsection (a) exceeds 60 percent of the institution's enrollment capacity designated for first-time resident undergraduate students, the institution shall provide to each school district, for dissemination to high school junior-level students and to the parents of those students, notice of which percentile ranks of high school senior-level students are anticipated by the institution to be automatically offered admission under Subsection (c) during the next school year if the institution elects to offer admission under that subsection.

(f)iiThis subsection applies only to a university system that includes more than one general academic teaching institution. Notwithstanding Subsection (c), in an academic year in which a component general academic teaching institution of the university system elects to offer admission to applicants as provided by Subsection (c), if an applicant for admission as a first-time resident undergraduate student who is qualified for automatic admission under Subsection (a) is not admitted to the institution under this section because the institution offers admission to applicants under Subsection (c) and the applicant is otherwise denied admission to the institution, the university system shall:

(1)iitreat the application as an application for admission to any of the system's other component general academic teaching institutions that for that same academic year do not offer admission to applicants as provided by Subsection (c); and

(2)iioffer the applicant admission to each of those other component institutions.

(g)iiAfter admitting an applicant under this section, the institution shall review the applicant's record and any other factor the institution considers appropriate to determine whether the applicant may require additional preparation for college-level work or would benefit from inclusion in a retention program. The institution may require a student so identified to enroll during the summer immediately after the student is admitted under this section to participate in appropriate enrichment courses and orientation programs. This section does not prohibit a student who is not determined to need additional preparation for college-level work from enrolling, if the student chooses, during the summer immediately after the student is admitted under this section.

(h)iiSubsection (a)(2) does not apply to an applicant who graduated from a public high school that does not offer the curriculum established under Section 28.025 for the recommended or advanced high school program.

Saturday, May 26, 2007 SENATE JOURNAL 4753


(i)iiAn applicant who does not satisfy the curriculum requirements of Subsection (a)(2) is considered to have satisfied those requirements if the high school from which the student graduated indicates on the student's transcript that the student completed the portion of the curriculum that was available to the student but was unable to complete the curriculum solely because courses necessary to complete the curriculum were unavailable to the student at the appropriate times in the student's high school career as a result of course scheduling, lack of enrollment capacity, or another cause not within the student's control.

(j)iiA general academic teaching institution that elects to offer admission to applicants under Subsection (c) shall demonstrate by direct action a commitment to:

(1)iiproviding opportunities for postsecondary education for members of all groups, including underrepresented groups such as racial or ethnic minority groups; and

(2)iiensuring racial and ethnic diversity in the institution's faculty and administrative staff.

(k)iiThis section expires August 31, 2015.

Sec.i51.807.iiRULEMAKING. (a)iiThe Texas Higher Education Coordinating Board may adopt rules relating to the operation of admissions programs under this subchapter, including rules relating to the identification of eligible students [and the reporting requirements of Section 51.806].

(b)iiThe Texas Higher Education Coordinating Board in consultation with the Texas Education Agency by rule shall establish standards for determining for purposes of this subchapter whether a person completed a high school curriculum that is equivalent to the curriculum established under Section 28.025 for the recommended or advanced high school program.

SECTIONi2.iiEffective September 1, 2015, Subchapter U, Chapter 51, Education Code, is amended by adding Section 51.8031 to read as follows:

Sec.i51.8031.iiAUTOMATIC ADMISSION: ALL INSTITUTIONS. (a)iiEach general academic teaching institution shall admit an applicant for admission to the institution as an undergraduate student if the applicant graduated with a grade point average in the top 10 percent of the student's high school graduating class in one of the two school years preceding the academic year for which the applicant is applying for admission and the applicant graduated from a public or private high school in this state accredited by a generally recognized accrediting organization or from a high school operated by the United States Department of Defense. To qualify for admission under this section, an applicant must submit an application before the expiration of any application filing deadline established by the institution and, if the applicant graduated from a high school operated by the United States Department of Defense, must be a Texas resident under Section 54.052 or be entitled to pay tuition fees at the rate provided for Texas residents under Section 54.058(d) for the term or semester to which admitted.

(b)iiAfter admitting an applicant under this section, the institution shall review the applicant's record and any other factor the institution considers appropriate to determine whether the applicant may require additional preparation for college-level work or would benefit from inclusion in a retention program. The institution may require a student so identified to enroll during the summer immediately after the

4754 80th Legislature — Regular Session 68th Day


student is admitted under this section to participate in appropriate enrichment courses and orientation programs. This section does not prohibit a student who is not determined to need additional preparation for college-level work from enrolling, if the student chooses, during the summer immediately after the student is admitted under this section.

(c)iiA reference in law to former Section 51.803, Education Code, is a reference to this section unless the context clearly indicates otherwise.

SECTIONi3.iiSubchapter U, Chapter 51, Education Code, is amended by adding Section 51.8035 to read as follows:

Sec.i51.8035.iiAUTOMATIC ADMISSION OF APPLICANTS COMPLETING CORE CURRICULUM AT ANOTHER INSTITUTION. (a) In this section:

(1)ii"Core curriculum" means the core curriculum adopted by an institution of higher education under Section 61.822.

(2)ii"Institution of higher education" has the meaning assigned by Section 61.003.

(b)iiA general academic teaching institution shall admit an applicant for admission to the institution as a transfer undergraduate student who:

(1)iigraduated from high school not earlier than the fourth school year before the academic year for which the applicant seeks admission and who qualified to be offered admission to the general academic teaching institution under Section 51.803(a) at the time of graduation;

(2)iifirst enrolled in an institution of higher education not earlier than the second academic year before the academic year for which the applicant seeks admission;

(3)iicompleted the core curriculum at an institution of higher education, other than the institution to which the applicant seeks admission, with a cumulative grade point average of at least 3.25 on a four-point scale or the equivalent; and

(4)iisubmits an application for admission as a transfer student before the expiration of any application filing deadline established by the institution.

(c)iiFor purposes of this section, transfer semester credit hours from a different institution of higher education and semester credit hours earned by examination shall be included in determining whether the person completed the core curriculum at an institution of higher education.

SECTIONi4.iiSubsection (g), Section 28.025, Education Code, is amended to read as follows:

(g)iiIf a student, other than a student permitted to take courses under the minimum high school program as provided by Subsection (b), is unable to complete the recommended or advanced high school program solely because necessary courses were unavailable to the student at the appropriate times in the student's high school career as a result of course scheduling, lack of enrollment capacity, or another cause not within the student's control, the school district, [shall indicate that fact] on the student's transcript form described by Subsection (e), shall:

(1)iiindicate whether the student completed those courses necessary to complete the program that were available to the student; and

Saturday, May 26, 2007 SENATE JOURNAL 4755


(2)iiidentify those courses necessary to complete the program that were unavailable to the student as a result of course scheduling, lack of enrollment capacity, or another cause not within the student's control.

SECTIONi5.iiSection 28.026, Education Code, is amended to read as follows:

Sec.i28.026.iiNOTICE OF AUTOMATIC COLLEGE ADMISSION. (a)iiThe board of trustees of a school district shall require each high school in the district to post appropriate signs in each counselor's office, in each principal's office, and in each administrative building indicating the substance of Section 51.803 regarding automatic college admission. To assist in the dissemination of this information, the school district shall:

(1)iirequire that each high school counselor and class advisor be provided a detailed explanation of the substance of Section 51.803;

(2)iiprovide each district student, at the time the student first registers for one or more classes required for high school graduation, with a written notification of the substance of Section 51.803;

(3)iirequire that each high school counselor and senior class advisor explain to eligible students the substance of Section 51.803; and

(4)i[(3)]iiprovide each eligible senior student under Section 51.803, at the commencement of a class's senior year, with a written notification of the student's eligibility with a detailed explanation of the substance of Section 51.803.

(b)iiThe commissioner shall adopt forms to use in providing notice under Subsections (a)(2) and (4). In providing notice under Subsection (a)(2) or (4), a school district shall use the appropriate form adopted by the commissioner.

(c)iiThe commissioner shall adopt procedures to ensure that, as soon as practicable after this subsection becomes law, each school district provides written notification of the substance of Section 51.803, as amended by the 80th Legislature, Regular Session, 2007, to each district student who, for the 2007-2008 school year, registers for the first time for one or more courses required for high school graduation. The commissioner may adopt rules under this subsection in the manner provided by law for emergency rules. Each district shall comply with the procedures adopted by the commissioner under this subsection. This subsection expires September 1, 2008.

SECTIONi6.iiSection 51.4032, Education Code, as added by Chapter 694, Acts of the 79th Legislature, Regular Session, 2005, is amended to read as follows:

Sec.i51.4032.iiANNUAL REPORT OF PARTICIPATION IN HIGHER EDUCATION. Not later than December 1 [July 31] of each year and in the form prescribed by the coordinating board, each general academic teaching institution and medical and dental unit as defined in Section 61.003 shall provide to the Texas Higher Education Coordinating Board and shall publish on the institution's website a report describing the composition of the institution's entering class of students. The report must include a demographic breakdown of the class, including a breakdown by race, ethnicity, [and] economic status, and high school class standing. A report submitted by a general academic teaching institution or medical and dental unit as defined in Section 61.003 must include separate demographic breakdowns of the students admitted under Sections 51.803, 51.804, and 51.805 and a description of any plans, policies, or programs developed or implemented by the institution to recruit and retain students from underrepresented groups such as racial or ethnic minority groups.

4756 80th Legislature — Regular Session 68th Day


SECTIONi7.iiExcept as otherwise specifically provided by this Act or a law amended or added by this Act, the change in law made by this Act applies beginning with admissions to institutions of higher education for the 2008-2009 academic year. Admissions to an institution of higher education before that academic year are governed by the law in effect before the effective date of this Act, and the former law is continued in effect for that purpose.

SECTIONi8.iiThe Texas Higher Education Coordinating Board shall adopt rules relating to the admission of students under Section 51.803, Education Code, as amended by this Act, as soon as practicable after the effective date of this Act.

SECTIONi9.iiThis Act takes effect September 1, 2007.

The Conference Committee Report on SBi101 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1864

Senator Hinojosa submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi1864 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

HINOJOSA GONZALES
CARONA CORTE
HARRIS VAN ARSDALE
WATSON VAUGHT
On the part of the Senate On the part of the House

The Conference Committee Report on HBi1864 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2644

Senator West submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Saturday, May 26, 2007 SENATE JOURNAL 4757


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2644 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

WEST HARTNETT
CARONA S. KING
DEUELL DELISI
JANEK
ELLIS
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2644 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3385

Senator Janek submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3385 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

JANEK CHISUM
AVERITT KEFFER
ESTES SWINFORD
FRASER D. HOWARD
WATSON
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3385 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1731

Senator Duncan submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

4758 80th Legislature — Regular Session 68th Day


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi1731 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

DUNCAN ISETT
ELTIFE DELISI
JANEK GATTIS
LUCIO ROSE
VANiDEiPUTTE TAYLOR
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to consumer access to health care information and consumer protection for services provided by or through health benefit plans, hospitals, ambulatory surgical centers, birthing centers, and other health care facilities, and funding for health care information services; providing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubtitle G, Title 4, Health and Safety Code, is amended by adding Chapter 324 to read as follows:

CHAPTER 324. CONSUMER ACCESS TO HEALTH CARE INFORMATION

SUBCHAPTER A. GENERAL PROVISIONS

Sec.i324.001.iiDEFINITIONS. In this chapter:

(1)ii"Average charge" means the mathematical average of facility charges for an inpatient admission or outpatient surgical procedure. The term does not include charges for a particular inpatient admission or outpatient surgical procedure that exceed the average by more than two standard deviations.

(2)ii"Billed charge" means the amount a facility charges for an inpatient admission, outpatient surgical procedure, or health care service or supply.

(3)ii"Costs" means the fixed and variable expenses incurred by a facility in the provision of a health care service.

(4)ii"Consumer" means any person who is considering receiving, is receiving, or has received a health care service or supply as a patient from a facility. The term includes the personal representative of the patient.

(5)ii"Department" means the Department of State Health Services.

(6)ii"Executive commissioner" means the executive commissioner of the Health and Human Services Commission.

(7)ii"Facility" means:

(A)iian ambulatory surgical center licensed under Chapter 243;

(B)iia birthing center licensed under Chapter 244; or

(C)iia hospital licensed under Chapter 241.

Sec.i324.002.iiRULES. The executive commissioner shall adopt and enforce rules to further the purposes of this chapter.

Saturday, May 26, 2007 SENATE JOURNAL 4759


[Sections 324.003-324.050 reserved for expansion]

SUBCHAPTER B. CONSUMER GUIDE TO HEALTH CARE

Sec.i324.051.iiDEPARTMENT WEBSITE. (a)iiThe department shall make available on the department's Internet website a consumer guide to health care. The department shall include information in the guide concerning facility pricing practices and the correlation between a facility's average charge for an inpatient admission or outpatient surgical procedure and the actual, billed charge for the admission or procedure, including notice that the average charge for a particular inpatient admission or outpatient surgical procedure will vary from the actual, billed charge for the admission or procedure based on:

(1)iithe person's medical condition;

(2)iiany unknown medical conditions of the person;

(3)iithe person's diagnosis and recommended treatment protocols ordered by the physician providing care to the person; and

(4)iiother factors associated with the inpatient admission or outpatient surgical procedure.

(b)iiThe department shall include information in the guide to advise consumers that:

(1)iithe average charge for an inpatient admission or outpatient surgical procedure may vary between facilities depending on a facility's cost structure, the range and frequency of the services provided, intensity of care, and payor mix;

(2)iithe average charge by a facility for an inpatient admission or outpatient surgical procedure will vary from the facility's costs or the amount that the facility may be reimbursed by a health benefit plan for the admission or surgical procedure;

(3)iithe consumer may be personally liable for payment for an inpatient admission, outpatient surgical procedure, or health care service or supply depending on the consumer's health benefit plan coverage;

(4)iithe consumer should contact the consumer's health benefit plan for accurate information regarding the plan structure, benefit coverage, deductibles, copayments, coinsurance, and other plan provisions that may impact the consumer's liability for payment for an inpatient admission, outpatient surgical procedure, or health care service or supply; and

(5)iithe consumer, if uninsured, may be eligible for a discount on facility charges based on a sliding fee scale or a written charity care policy established by the facility.

(c)iiThe department shall include on the consumer guide to health care website:

(1)iian Internet link for consumers to access quality of care data, including:

(A)iithe Texas Health Care Information Collection website;

(B)iithe Hospital Compare website within the United States Department of Health and Human Services website;

(C)iithe Joint Commission on Accreditation of Healthcare Organizations website; and

(D)iithe Texas Hospital Association's Texas PricePoint website; and

(2)iia disclaimer noting the websites that are not provided by this state or an agency of this state.

4760 80th Legislature — Regular Session 68th Day


(d)iiThe department may accept gifts and grants to fund the consumer guide to health care. On the department's Internet website, the department may not identify, recognize, or acknowledge in any format the donors or grantors to the consumer guide to health care.

[Sections 324.052-324.100 reserved for expansion]

SUBCHAPTER C. BILLING OF FACILITY SERVICES AND SUPPLIES

Sec.i324.101.iiFACILITY POLICIES. (a)iiEach facility shall develop, implement, and enforce written policies for the billing of facility health care services and supplies. The policies must address:

(1)iiany discounting of facility charges to an uninsured consumer, subject to Chapter 552, Insurance Code;

(2)iiany discounting of facility charges provided to a financially or medically indigent consumer who qualifies for indigent services based on a sliding fee scale or a written charity care policy established by the facility and the documented income and other resources of the consumer;

(3)iithe providing of an itemized statement required by Subsection (e);

(4)iiwhether interest will be applied to any billed service not covered by a third-party payor and the rate of any interest charged;

(5)iithe procedure for handling complaints; and

(6)iithe providing of a conspicuous written disclosure to a consumer at the time the consumer is first admitted to the facility or first receives services at the facility that:

(A)iiprovides confirmation whether the facility is a participating provider under the consumer's third-party payor coverage on the date services are to be rendered based on the information received from the consumer at the time the confirmation is provided; and

(B)iiinforms the consumer that a physician or other health care provider who may provide services to the consumer while in the facility may not be a participating provider with the same third-party payors as the facility.

(b)iiFor services provided in an emergency department of a hospital or as a result of an emergent direct admission, the hospital shall provide the written disclosure required by Subsection (a)(6) before discharging the patient from the emergency department or hospital, as appropriate.

(c)iiEach facility shall post in the general waiting area and in the waiting areas of any off-site or on-site registration, admission, or business office a clear and conspicuous notice of the availability of the policies required by Subsection (a).

(d)iiThe facility shall provide an estimate of the facility's charges for any elective inpatient admission or nonemergency outpatient surgical procedure or other service on request and before the scheduling of the admission or procedure or service. The estimate must be provided not later than the 10th business day after the date on which the estimate is requested. The facility must advise the consumer that:

(1)iithe request for an estimate of charges may result in a delay in the scheduling and provision of the inpatient admission, outpatient surgical procedure, or other service;

Saturday, May 26, 2007 SENATE JOURNAL 4761


(2)iithe actual charges for an inpatient admission, outpatient surgical procedure, or other service will vary based on the person's medical condition and other factors associated with performance of the procedure or service;

(3)iithe actual charges for an inpatient admission, outpatient surgical procedure, or other service may differ from the amount to be paid by the consumer or the consumer's third-party payor;

(4)iithe consumer may be personally liable for payment for the inpatient admission, outpatient surgical procedure, or other service depending on the consumer's health benefit plan coverage; and

(5)iithe consumer should contact the consumer's health benefit plan for accurate information regarding the plan structure, benefit coverage, deductibles, copayments, coinsurance, and other plan provisions that may impact the consumer's liability for payment for the inpatient admission, outpatient surgical procedure, or other service.

(e)iiA facility shall provide to the consumer at the consumer's request an itemized statement of the billed services if the consumer requests the statement not later than the first anniversary of the date the person is discharged from the facility. The facility shall provide the statement to the consumer not later than the 10th business day after the date on which the statement is requested.

(f)iiA facility shall provide an itemized statement of billed services to a third-party payor who is actually or potentially responsible for paying all or part of the billed services provided to a patient and who has received a claim for payment of those services. To be entitled to receive a statement, the third-party payor must request the statement from the facility and must have received a claim for payment. The request must be made not later than one year after the date on which the payor received the claim for payment. The facility shall provide the statement to the payor not later than the 30th day after the date on which the payor requests the statement. If a third-party payor receives a claim for payment of part but not all of the billed services, the third-party payor may request an itemized statement of only the billed services for which payment is claimed or to which any deduction or copayment applies.

(g)iiA facility in violation of this section is subject to enforcement action by the appropriate licensing agency.

(h)iiIf a consumer or a third-party payor requests more than two copies of the statement, the facility may charge a reasonable fee for the third and subsequent copies provided. The fee may not exceed the sum of:

(1)iia basic retrieval or processing fee, which must include the fee for providing the first 10 pages of the copies and which may not exceed $30;

(2)iia charge for each page of:

(A)ii$1 for the 11th through the 60th page of the provided copies;

(B)ii50 cents for the 61st through the 400th page of the provided copies; and

(C)ii25 cents for any remaining pages of the provided copies; and

(3)iithe actual cost of mailing, shipping, or otherwise delivering the provided copies.

4762 80th Legislature — Regular Session 68th Day


(i)iiIf a consumer overpays a facility, the facility must refund the amount of the overpayment not later than the 30th day after the date the facility determines that an overpayment has been made. This subsection does not apply to an overpayment subject to Section 1301.132 or 843.350, Insurance Code.

Sec.i324.102.iiCOMPLAINT PROCESS. A facility shall establish and implement a procedure for handling consumer complaints, and must make a good faith effort to resolve the complaint in an informal manner based on its complaint procedures. If the complaint cannot be resolved informally, the facility shall advise the consumer that a complaint may be filed with the department and shall provide the consumer with the mailing address and telephone number of the department.

Sec.i324.103.iiCONSUMER WAIVER PROHIBITED. The provisions of this chapter may not be waived, voided, or nullified by a contract or an agreement between a facility and a consumer.

SECTIONi2.iiSubdivision (10), Section 108.002, Health and Safety Code, is amended to read as follows:

(10)ii"Health care facility" means:

(A)iia hospital;

(B)iian ambulatory surgical center licensed under Chapter 243;

(C)iia chemical dependency treatment facility licensed under Chapter 464;

(D)iia renal dialysis facility;

(E)iia birthing center;

(F)iia rural health clinic; [or]

(G)iia federally qualified health center as defined by 42 U.S.C. Section 1396d(l)(2)(B); or

(H)iia free-standing imaging center.

SECTIONi3.iiSubsection (k), Section 108.009, Health and Safety Code, is amended to read as follows:

(k)iiThe council shall collect health care data elements relating to payer type, the racial and ethnic background of patients, and the use of health care services by consumers. The council shall prioritize data collection efforts on inpatient and outpatient surgical and radiological procedures from hospitals, ambulatory surgical centers, and free-standing radiology centers.

SECTIONi4.iiSection 241.025, Health and Safety Code, is amended by adding Subsection (e) to read as follows:

(e)iiNotwithstanding Subsection (d), to the extent that money received from the fees collected under this chapter exceeds the costs to the department to conduct the activity for which the fee is imposed, the department may use the money to administer Chapter 324 and similar laws that require the department to provide information related to hospital care to the public. The department may not consider the costs of administering Chapter 324 or similar laws in adopting a fee imposed under this section.

SECTIONi5.iiSubsection (h), Section 311.002, Health and Safety Code, is amended to read as follows:

(h)iiIn this section, "hospital" includes:

(1)ii[a hospital licensed under Chapter 241;

Saturday, May 26, 2007 SENATE JOURNAL 4763


[(2)]iia treatment facility licensed under Chapter 464; and

(2)i[(3)]iia mental health facility licensed under Chapter 577.

SECTIONi6.iiChapter 101, Occupations Code, is amended by adding Subchapter H, transferring Section 101.202 to Subchapter H redesignated as Section 101.351 and further amending that section, and adding Section 101.352 to read as follows:

SUBCHAPTER H. BILLING

Sec.i101.351i[101.202].iiFAILURE TO PROVIDE BILLING INFORMATION. On the written request of a patient, a health care professional shall provide, in plain language, a written explanation of the charges for professional services previously made on a bill or statement for the patient. This section does not apply to a physician subject to Section 101.352.

Sec.i101.352.iiBILLING POLICIES AND INFORMATION; PHYSICIANS. (a)iiA physician shall develop, implement, and enforce written policies for the billing of health care services and supplies. The policies must address:

(1)iiany discounting of charges for health care services or supplies provided to an uninsured patient that is not covered by a patient's third-party payor, subject to Chapter 552, Insurance Code;

(2)iiany discounting of charges for health care services or supplies provided to an indigent patient who qualifies for services or supplies based on a sliding fee scale or a written charity care policy established by the physician;

(3)iiwhether interest will be applied to any billed health care service or supply not covered by a third-party payor and the rate of any interest charged; and

(4)iithe procedure for handling complaints relating to billed charges for health care services or supplies.

(b)iiEach physician who maintains a waiting area shall post a clear and conspicuous notice of the availability of the policies required by Subsection (a) in the waiting area and in any registration, admission, or business office in which patients are reasonably expected to seek service.

(c)iiOn the request of a patient who is seeking services that are to be provided on an out-of-network basis or who does not have coverage under a government program, health insurance policy, or health maintenance organization evidence of coverage, a physician shall provide an estimate of the charges for any health care services or supplies. The estimate must be provided not later than the 10th business day after the date of the request. A physician must advise the consumer that:

(1)iithe request for an estimate of charges may result in a delay in the scheduling and provision of the services;

(2)iithe actual charges for the services or supplies will vary based on the patient's medical condition and other factors associated with performance of the services;

(3)iithe actual charges for the services or supplies may differ from the amount to be paid by the patient or the patient's third-party payor; and

(4)iithe patient may be personally liable for payment for the services or supplies depending on the patient's health benefit plan coverage.

4764 80th Legislature — Regular Session 68th Day


(d)iiFor services provided in an emergency department of a hospital or as a result of an emergent direct admission, the physician shall provide the estimate of charges required by Subsection (c) not later than the 10th business day after the request or before discharging the patient from the emergency department or hospital, whichever is later, as appropriate.

(e)iiA physician shall provide a patient with an itemized statement of the charges for professional services or supplies not later than the 10th business day after the date on which the statement is requested if the patient requests the statement not later than the first anniversary of the date on which the health care services or supplies were provided.

(f)iiIf a patient requests more than two copies of the statement, a physician may charge a reasonable fee for the third and subsequent copies provided. The Texas Medical Board shall by rule set the permissible fee a physician may charge for copying, processing, and delivering a copy of the statement.

(g)iiOn the request of a patient, a physician shall provide, in plain language, a written explanation of the charges for services or supplies previously made on a bill or statement for the patient.

(h)iiIf a patient overpays a physician, the physician must refund the amount of the overpayment not later than the 30th day after the date the physician determines that an overpayment has been made. This subsection does not apply to an overpayment subject to Section 1301.132 or 843.350, Insurance Code.

(i)iiIn this section, "physician" means a person licensed to practice in this state.

SECTIONi7.iiSection 154.002, Occupations Code, is amended by adding Subsection (c) to read as follows:

(c)iiThe board shall make available on the board's Internet website a consumer guide to health care. The board shall include information in the guide concerning the billing and reimbursement of health care services provided by physicians, including information that advises consumers that:

(1)iithe charge for a health care service or supply will vary based on:

(A)iithe person's medical condition;

(B)iiany unknown medical conditions of the person;

(C)iithe person's diagnosis and recommended treatment protocols; and

(D)iiother factors associated with performance of the health care service;

(2)iithe charge for a health care service or supply may differ from the amount to be paid by the consumer or the consumer's third-party payor;

(3)iithe consumer may be personally liable for payment for the health care service or supply depending on the consumer's health benefit plan coverage; and

(4)iithe consumer should contact the consumer's health benefit plan for accurate information regarding the plan structure, benefit coverage, deductibles, copayments, coinsurance, and other plan provisions that may impact the consumer's liability for payment for the health care services or supplies.

SECTIONi8.iiChapter 38, Insurance Code, is amended by adding Subchapter H to read as follows:

SUBCHAPTER H. HEALTH CARE REIMBURSEMENT RATE INFORMATION

Sec.i38.351.iiPURPOSE OF SUBCHAPTER. The purpose of this subchapter is to authorize the department to:

Saturday, May 26, 2007 SENATE JOURNAL 4765


(1)iicollect data concerning health benefit plan reimbursement rates in a uniform format; and

(2)iidisseminate, on an aggregate basis for geographical regions in this state, information concerning health care reimbursement rates derived from the data.

Sec.i38.352.iiDEFINITION. In this subchapter, "group health benefit plan" means a preferred provider benefit plan as defined by Section 1301.001 or an evidence of coverage for a health care plan that provides basic health care services as defined by Section 843.002.

Sec.i38.353.iiAPPLICABILITY OF SUBCHAPTER. (a)iiThis subchapter applies to the issuer of a group health benefit plan, including:

(1)iian insurance company;

(2)iia group hospital service corporation;

(3)iia fraternal benefit society;

(4)iia stipulated premium company;

(5)iia reciprocal or interinsurance exchange; or

(6)iia health maintenance organization.

(b)iiNotwithstanding any provision in Chapter 1551, 1575, 1579, or 1601 or any other law, and except as provided by Subsection (e), this subchapter applies to:

(1)iia basic coverage plan under Chapter 1551;

(2)iia basic plan under Chapter 1575;

(3)iia primary care coverage plan under Chapter 1579; and

(4)iibasic coverage under Chapter 1601.

(c)iiExcept as provided by Subsection (d), this subchapter applies to a small employer health benefit plan provided under Chapter 1501.

(d)iiThis subchapter does not apply to:

(1)iistandard health benefit plans provided under Chapter 1507;

(2)iichildren's health benefit plans provided under Chapter 1502;

(3)iihealth care benefits provided under a workers' compensation insurance policy;

(4)iiMedicaid managed care programs operated under Chapter 533, Government Code;

(5)iiMedicaid programs operated under Chapter 32, Human Resources Code; or

(6)iithe state child health plan operated under Chapter 62 or 63, Health and Safety Code.

(e)iiThe commissioner by rule may exclude a type of health benefit plan from the requirements of this subchapter if the commissioner finds that data collected in relation to the health benefit plan would not be relevant to accomplishing the purposes of this subchapter.

Sec.i38.354.iiRULES. The commissioner may adopt rules as provided by Subchapter A, Chapter 36, to implement this subchapter.

Sec.i38.355.iiDATA CALL; STANDARDIZED FORMAT. (a)iiEach health benefit plan issuer shall submit to the department, at the time and in the form and manner required by the department, aggregate reimbursement rates by region paid by the health benefit plan issuer for health care services identified by the department.

4766 80th Legislature — Regular Session 68th Day


(b)iiThe department shall require that data submitted under this section be submitted in a standardized format, established by rule, to permit comparison of health care reimbursement rates. To the extent feasible, the department shall develop the data submission requirements in a manner that allows collection of reimbursement rates as a dollar amount and not by comparison to other standard reimbursement rates, such as Medicare reimbursement rates.

(c)iiThe department shall specify the period for which reimbursement rates must be filed under this section.

(d)iiThe department may contract with a private third party to obtain the data under this subchapter. If the department contracts with a third party, the department may determine the aggregate data to be collected and published under Section 38.357 if consistent with the purposes of this subchapter described in Section 38.351. The department shall prohibit the third party contractor from selling, leasing, or publishing the data obtained by the contractor under this subchapter.

Sec.i38.356.iiCONFIDENTIALITY OF DATA. Except as provided by Section 38.357, data collected under this subchapter is confidential and not subject to disclosure under Chapter 552, Government Code.

Sec.i38.357.iiPUBLICATION OF AGGREGATE HEALTH CARE REIMBURSEMENT RATE INFORMATION. The department shall provide to the Department of State Health Services for publication, for identified regions of this state, aggregate health care reimbursement rate information derived from the data collected under this subchapter. The published information may not reveal the name of any health care provider or health benefit plan issuer. The department may make the aggregate health care reimbursement rate information available through the department's Internet website.

Sec.i38.358.iiPENALTIES. A health benefit plan issuer that fails to submit data as required in accordance with this subchapter is subject to an administrative penalty under Chapter 84. For purposes of penalty assessment, each day the health benefit plan issuer fails to submit the data as required is a separate violation.

SECTIONi9.iiSection 843.155, Insurance Code, is amended by amending Subsection (b) and adding Subsection (d) to read as follows:

(b)iiThe report shall:

(1)iibe verified by at least two principal officers;

(2)iibe in a form prescribed by the commissioner; and

(3)iiinclude:

(A)iia financial statement of the health maintenance organization, including its balance sheet and receipts and disbursements for the preceding calendar year, certified by an independent public accountant;

(B)iithe number of individuals enrolled during the preceding calendar year, the number of enrollees as of the end of that year, and the number of enrollments terminated during that year;

(C)iia statement of:

(i)iian evaluation of enrollee satisfaction;

(ii)iian evaluation of quality of care;

(iii)iicoverage areas;

(iv)iiaccreditation status;

Saturday, May 26, 2007 SENATE JOURNAL 4767


(v)iipremium costs;

(vi)iiplan costs;

(vii)iipremium increases;

(viii)iithe range of benefits provided;

(ix)iicopayments and deductibles;

(x)iithe accuracy and speed of claims payment by the organization;

(xi)iithe credentials of physicians of the organization; and

(xii)iithe number of providers;

(D)iiupdated financial projections for the next calendar year of the type described in Section 843.078(e), until the health maintenance organization has had a net income for 12 consecutive months; and

(E)i[(D)]iiother information relating to the performance of the health maintenance organization as necessary to enable the commissioner to perform the commissioner's duties under this chapter and Chapter 20A.

(d)iiThe annual report filed by the health maintenance organization shall be made publicly available on the department's Internet website in a user-friendly format that allows consumers to make direct comparisons of the financial and other data reported by health maintenance organizations under this section.

SECTIONi10.iiSubchapter A, Chapter 1301, Insurance Code, is amended by adding Section 1301.009 to read as follows:

Sec.i1301.009.iiANNUAL REPORT. (a)iiNot later than March 1 of each year, an insurer shall file with the commissioner a report relating to the preferred provider benefit plan offered under this chapter and covering the preceding calendar year.

(b)iiThe report shall:

(1)iibe verified by at least two principal officers;

(2)iibe in a form prescribed by the commissioner; and

(3)iiinclude:

(A)iia financial statement of the insurer, including its balance sheet and receipts and disbursements for the preceding calendar year, certified by an independent public accountant;

(B)iithe number of individuals enrolled during the preceding calendar year, the number of enrollees as of the end of that year, and the number of enrollments terminated during that year; and

(C)iia statement of:

(i)iian evaluation of enrollee satisfaction;

(ii)iian evaluation of quality of care;

(iii)iicoverage areas;

(iv)iiaccreditation status;

(v)iipremium costs;

(vi)iiplan costs;

(vii)iipremium increases;

(viii)iithe range of benefits provided;

(ix)iicopayments and deductibles;

(x)iithe accuracy and speed of claims payment by the insurer for the plan;

(xi)iithe credentials of physicians who are preferred providers; and

4768 80th Legislature — Regular Session 68th Day


(xii)iithe number of preferred providers.

(c)iiThe annual report filed by the insurer shall be made publicly available on the department's website in a user-friendly format that allows consumers to make direct comparisons of the financial and other data reported by insurers under this section.

(d)iiAn insurer providing group coverage of $10 million or less in premiums or individual coverage of $2 million or less in premiums is not required to report the data required under Subsection (b)(3)(C).

SECTIONi11.iiSubtitle F, Title 8, Insurance Code, is amended by adding Chapter 1456 to read as follows:

CHAPTER 1456. DISCLOSURE OF PROVIDER STATUS

Sec.i1456.001.iiDEFINITIONS. In this chapter:

(1)ii"Balance billing" means the practice of charging an enrollee in a health benefit plan that uses a provider network to recover from the enrollee the balance of a non-network health care provider's fee for service received by the enrollee from the health care provider that is not fully reimbursed by the enrollee's health benefit plan.

(2)ii"Enrollee" means an individual who is eligible to receive health care services through a health benefit plan.

(3)ii"Facility-based physician" means a radiologist, an anesthesiologist, a pathologist, an emergency department physician, or a neonatologist:

(A)iito whom the facility has granted clinical privileges; and

(B)iiwho provides services to patients of the facility under those clinical privileges.

(4)ii"Health care facility" means a hospital, emergency clinic, outpatient clinic, birthing center, ambulatory surgical center, or other facility providing health care services.

(5)ii"Health care practitioner" means an individual who is licensed to provide and provides health care services.

(6)ii"Provider network" means a health benefit plan under which health care services are provided to enrollees through contracts with health care providers and that requires those enrollees to use health care providers participating in the plan and procedures covered by the plan. The term includes a network operated by:

(A)iia health maintenance organization;

(B)iia preferred provider benefit plan issuer; or

(C)iianother entity that issues a health benefit plan, including an insurance company.

Sec.i1456.002.iiAPPLICABILITY OF CHAPTER. (a)iiThis chapter applies to any health benefit plan that:

(1)iiprovides benefits for medical or surgical expenses incurred as a result of a health condition, accident, or sickness, including an individual, group, blanket, or franchise insurance policy or insurance agreement, a group hospital service contract, or an individual or group evidence of coverage that is offered by:

(A)iian insurance company;

(B)iia group hospital service corporation operating under Chapter 842;

(C)iia fraternal benefit society operating under Chapter 885;

(D)iia stipulated premium company operating under Chapter 884;

(E)iia health maintenance organization operating under Chapter 843;

Saturday, May 26, 2007 SENATE JOURNAL 4769


(F)iia multiple employer welfare arrangement that holds a certificate of authority under Chapter 846;

(G)iian approved nonprofit health corporation that holds a certificate of authority under Chapter 844; or

(H)iian entity not authorized under this code or another insurance law of this state that contracts directly for health care services on a risk-sharing basis, including a capitation basis; or

(2)iiprovides health and accident coverage through a risk pool created under Chapter 172, Local Government Code, notwithstanding Section 172.014, Local Government Code, or any other law.

(b)iiThis chapter applies to a person to whom a health benefit plan contracts to:

(1)iiprocess or pay claims;

(2)iiobtain the services of physicians or other providers to provide health care services to enrollees; or

(3)iiissue verifications or preauthorizations.

(c)iiThis chapter does not apply to:

(1)iiMedicaid managed care programs operated under Chapter 533, Government Code;

(2)iiMedicaid programs operated under Chapter 32, Human Resources Code; or

(3)iithe state child health plan operated under Chapter 62 or 63, Health and Safety Code.

Sec.i1456.003.iiREQUIRED DISCLOSURE: HEALTH BENEFIT PLAN. (a)iiEach health benefit plan that provides health care through a provider network shall provide notice to its enrollees that:

(1)iia facility-based physician or other health care practitioner may not be included in the health benefit plan's provider network; and

(2)iia health care practitioner described by Subdivision (1) may balance bill the enrollee for amounts not paid by the health benefit plan.

(b)iiThe health benefit plan shall provide the disclosure in writing to each enrollee:

(1)iiin any materials sent to the enrollee in conjunction with issuance or renewal of the plan's insurance policy or evidence of coverage;

(2)iiin an explanation of payment summary provided to the enrollee or in any other analogous document that describes the enrollee's benefits under the plan; and

(3)iiconspicuously displayed, on any health benefit plan website that an enrollee is reasonably expected to access.

(c)iiA health benefit plan must clearly identify any health care facilities within the provider network in which facility-based physicians do not participate in the health benefit plan's provider network. Health care facilities identified under this subsection must be identified in a separate and conspicuous manner in any provider network directory or website directory.

4770 80th Legislature — Regular Session 68th Day


(d)iiAlong with any explanation of benefits sent to an enrollee that contains a remark code indicating a payment made to a non-network physician has been paid at the health benefit plan's allowable or usual and customary amount, a health benefit plan must also include the number for the department's consumer protection division for complaints regarding payment.

Sec.i1456.004.iiREQUIRED DISCLOSURE: FACILITY-BASED PHYSICIANS. (a)iiIf a facility-based physician bills a patient who is covered by a health benefit plan described in Section 1456.002 that does not have a contract with the facility-based physician, the facility-based physician shall send a billing statement that:

(1)iicontains an itemized listing of the services and supplies provided along with the dates the services and supplies were provided;

(2)iicontains a conspicuous, plain-language explanation that:

(A)iithe facility-based physician is not within the health plan provider network; and

(B)iithe health benefit plan has paid a rate, as determined by the health benefit plan, which is below the facility-based physician billed amount;

(3)iicontains a telephone number to call to discuss the statement, provide an explanation of any acronyms, abbreviations, and numbers used on the statement, or discuss any payment issues;

(4)iicontains a statement that the patient may call to discuss alternative payment arrangements;

(5)iicontains a notice that the patient may file complaints with the Texas Medical Board and includes the Texas Medical Board mailing address and complaint telephone number; and

(6)iifor billing statements that total an amount greater than $200, over any applicable copayments or deductibles, states, in plain language, that if the patient finalizes a payment plan agreement within 45 days of receiving the first billing statement and substantially complies with the agreement, the facility-based physician may not furnish adverse information to a consumer reporting agency regarding an amount owed by the patient for the receipt of medical treatment.

(b)iiA patient may be considered by the facility-based physician to be out of substantial compliance with the payment plan agreement if payments are not made in compliance with the agreement for a period of 90 days.

Sec.i1456.005.iiDISCIPLINARY ACTION AND ADMINISTRATIVE PENALTY. (a)iiThe commissioner may take disciplinary action against a licensee that violates this chapter, in accordance with Chapter 84.

(b)iiA violation of this chapter by a facility-based physician is grounds for disciplinary action and imposition of an administrative penalty by the Texas Medical Board.

(c)iiThe Texas Medical Board shall:

(1)iinotify a facility-based physician of a finding by the Texas Medical Board that the facility-based physician is violating or has violated this chapter or a rule adopted under this chapter; and

(2)iiprovide the facility-based physician with an opportunity to correct the violation without penalty or reprimand.

Saturday, May 26, 2007 SENATE JOURNAL 4771


Sec.i1456.006.iiCOMMISSIONER RULES; FORM OF DISCLOSURE. The commissioner by rule may prescribe specific requirements for the disclosure required under Section 1456.003. The form of the disclosure must be substantially as follows:

NOTICE: "ALTHOUGH HEALTH CARE SERVICES MAY BE OR HAVE BEEN PROVIDED TO YOU AT A HEALTH CARE FACILITY THAT IS A MEMBER OF THE PROVIDER NETWORK USED BY YOUR HEALTH BENEFIT PLAN, OTHER PROFESSIONAL SERVICES MAY BE OR HAVE BEEN PROVIDED AT OR THROUGH THE FACILITY BY PHYSICIANS AND OTHER HEALTH CARE PRACTITIONERS WHO ARE NOT MEMBERS OF THAT NETWORK. YOU MAY BE RESPONSIBLE FOR PAYMENT OF ALL OR PART OF THE FEES FOR THOSE PROFESSIONAL SERVICES THAT ARE NOT PAID OR COVERED BY YOUR HEALTH BENEFIT PLAN."

Sec.i1456.0065.iiSTUDY OF NETWORK ADEQUACY AND CONTRACTS OF HEALTH PLANS. (a)iiIn this section:

(1)ii"Commissioner" means the commissioner of insurance.

(2)ii"Health benefit plan" means an insurance policy or a contract or evidence of coverage issued by a health maintenance organization or an employer or employee sponsored health plan.

(b)iiThe commissioner shall appoint an advisory committee to study facility-based provider network adequacy of health benefit plans.

(c)iiThe advisory committee shall be composed of:

(1)iione or more physician representatives;

(2)iione or more hospital representatives;

(3)iione or more health benefit plan representatives, to equal the total number of physician and hospital representatives; and

(4)iione representative each from associations representing physicians, hospitals, and health benefit plans.

(d)iiThe advisory committee periodically and not later than December 1, 2008, shall advise the following of its findings:

(1)iithe governor;

(2)iithe lieutenant governor;

(3)iithe speaker of the house of representatives;

(4)iithe commissioner; and

(5)iithe chairs of the standing committees of the senate and house of representatives that have primary jurisdiction over health benefit plans.

(e)iiMembers of the advisory committee serve without compensation.

(f)iiThe advisory committee is abolished and this section expires January 1, 2009.

Sec.i1456.007.iiHEALTH BENEFIT PLAN ESTIMATE OF CHARGES. A health benefit plan that must comply with this chapter under Section 1456.002 shall, on the request of an enrollee, provide an estimate of payments that will be made for any health care service or supply and shall also specify any deductibles, copayments, coinsurance, or other amounts for which the enrollee is responsible. The estimate must be provided not later than the 10th business day after the date on which the estimate was requested. A health benefit plan must advise the enrollee that:

4772 80th Legislature — Regular Session 68th Day


(1)iithe actual payment and charges for the services or supplies will vary based upon the enrollee's actual medical condition and other factors associated with performance of medical services; and

(2)iithe enrollee may be personally liable for the payment of services or supplies based upon the enrollee's health benefit plan coverage.

SECTIONi12.iiSection 843.201, Insurance Code, is amended by adding Subsection (d) to read as follows:

(d)iiA health maintenance organization shall provide to an enrollee on request information on:

(1)iiwhether a physician or other health care provider is a participating provider in the health maintenance organization's network;

(2)iiwhether proposed health care services are covered by the health plan; and

(3)iiwhat the enrollee's personal responsibility will be for payment of applicable copayment or deductible amounts.

SECTIONi13.iiSubchapter F, Chapter 843, Insurance Code, is amended by adding Section 843.211 to read as follows:

Sec.i843.211.iiAPPLICABILITY OF SUBCHAPTER TO ENTITIES CONTRACTING WITH HEALTH MAINTENANCE ORGANIZATION. This subchapter applies to a person to whom a health maintenance organization contracts to:

(1)iiprocess or pay claims;

(2)iiobtain the services of physicians or other providers to provide health care services to enrollees; or

(3)iiissue verifications or preauthorizations.

SECTIONi14.iiSection 1301.158, Insurance Code, is amended by adding Subsection (d) to read as follows:

(d)iiAn insurer shall provide to an insured on request information on:

(1)iiwhether a physician or other health care provider is a participating provider in the insurer's preferred provider network;

(2)iiwhether proposed health care services are covered by the health insurance policy;

(3)iiwhat the insured's personal responsibility will be for payment of applicable copayment or deductible amounts; and

(4)iicoinsurance amounts owed based on the provider's contracted rate for in-network services or the insurer's usual and customary reimbursement rate for out-of-network services.

SECTIONi15.iiSubchapter D, Chapter 1301, Insurance Code, is amended by adding Section 1301.163 to read as follows:

Sec.i1301.163.iiAPPLICABILITY OF SUBCHAPTER TO ENTITIES CONTRACTING WITH INSURER. This subchapter applies to a person to whom an insurer contracts to:

(1)iiprocess or pay claims;

(2)iiobtain the services of physicians or other providers to provide health care services to enrollees; or

(3)iiissue verifications or preauthorizations.

Saturday, May 26, 2007 SENATE JOURNAL 4773


SECTIONi16.iiSection 1506.007, Insurance Code, is amended by adding Subsections (a-1) and (a-2) to read as follows:

(a-1)iiA health benefit plan issuer, employer, or other person who is required to provide notice to an individual of the individual's ability to continue coverage in accordance with Title X, Consolidated Omnibus Budget Reconciliation Act of 1985 (29 U.S.C. Section 1161 et seq.) (COBRA), shall, at the time that that notice is required, also provide notice to the individual of the availability of coverage under the pool.

(a-2)iiA health benefit plan issuer who is providing coverage to an individual in accordance with Title X, Consolidated Omnibus Budget Reconciliation Act of 1985 (29 U.S.C. Section 1161 et seq.) (COBRA), shall, not later than the 45th day before the date that coverage expires, notify the individual of the availability of coverage under the pool.

SECTIONi17.iiThis Act applies to an insurance policy, certificate, or contract or an evidence of coverage delivered, issued for delivery, or renewed on or after the effective date of this Act. A policy, certificate, or contract or evidence of coverage delivered, issued for delivery, or renewed before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTIONi18.iiExcept as provided by Section 19 of this Act, the Department of State Health Services, Texas Medical Board, and Texas Department of Insurance shall adopt rules as necessary to implement this Act not later than May 1, 2008.

SECTIONi19.iiNot later than December 31, 2007, the commissioner of insurance shall adopt rules as necessary to implement Subchapter H, Chapter 38, Insurance Code, as added by this Act. The rules must require that each health benefit plan issuer subject to that subchapter make the initial submission of data under that subchapter not later than the 60th day after the effective date of the rules.

SECTIONi20.ii(a)iiThe commissioner of insurance by rule shall require each health benefit plan issuer subject to Chapter 1456, Insurance Code, as added by this Act, to submit information to the Texas Department of Insurance concerning the use of non-network providers by health benefit plan enrollees and the payments made to those providers. The information collected must cover a 12-month period specified by the commissioner of insurance. The commissioner of insurance shall work with the network adequacy study group to develop the data collection and evaluate the information collected.

(b)iiA health benefit plan issuer that fails to submit data as required in accordance with this section is subject to an administrative penalty under Chapter 84, Insurance Code. For purposes of penalty assessment, each day the health benefit plan issuer fails to submit the data as required is a separate violation.

SECTIONi21.iiThis Act takes effect September 1, 2007.

The Conference Committee Report on SBi1731 was filed with the Secretary of the Senate.

4774 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3438

Senator Lucio submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3438 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

LUCIO FLORES
AVERITT GONZALES
BRIMER GUILLEN
HINOJOSA PENA
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3438 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2814

Senator VanideiPutte submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2814 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

VANiDEiPUTTE EISSLER
JANEK ZEDLER
OGDEN DELISI
SHAPIRO HOCHBERG
ZAFFIRINI PATRICK
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2814 was filed with the Secretary of the Senate.

Saturday, May 26, 2007 SENATE JOURNAL 4775


CONFERENCE COMMITTEE REPORT ON

SENATE BILL 960

Senator Shapleigh submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi960 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

SHAPLEIGH HAGGERTY
ELTIFE CHAVEZ
SHAPIRO PICKETT
URESTI QUINTANILLA
VAN DE PUTTE MORENO
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to the administration of exit-level state assessment instruments to transfer students who are dependents of military personnel.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 39.025, Education Code, is amended by adding Subsections (f) and (g) to read as follows:

(f)iiNotwithstanding any other provision of this section, the commissioner shall allow a student who is the dependent of a person serving in the military to satisfy the requirements of Subsection (a) and qualify for a high school diploma through satisfactory performance on one or more alternative nationally recognized norm-referenced assessment instruments if the student, as a result of a military transfer or deployment of the person serving in the military, transfers into the public school system of this state after completion of the student's sophomore year in high school.

(g)iiFor purposes of Subsection (f), the commissioner, in order to ensure that a student described by that subsection may satisfy the requirements of Subsection (a) solely through performance on one or more alternative assessment instruments, shall establish required performance levels for the alternative assessment instrument or instruments that correspond to the performance levels otherwise required under Subsection (a) on the secondary exit-level assessment instruments for English language arts, mathematics, social studies, and science.

SECTIONi2.iiSection 39.025, Education Code, as amended by this Act, applies beginning with students enrolled in public high schools in this state as juniors or seniors during the 2006-2007 school year.

4776 80th Legislature — Regular Session 68th Day


SECTIONi3.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

The Conference Committee Report on SBi960 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1267

Senator Seliger submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi1267 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

SELIGER PENA
ELLIS ESCOBAR
HINOJOSA GATTIS
DUNCAN HARTNETT
HARRIS TALTON
On the part of the Senate On the part of the House

The Conference Committee Report on HBi1267 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1801

Senator Hegar submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi1801 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

Saturday, May 26, 2007 SENATE JOURNAL 4777


HEGAR ZERWAS
DEUELL ESCOBAR
NICHOLS PENA
PIERSON
VAUGHT
On the part of the Senate On the part of the House

The Conference Committee Report on HBi1801 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3560

Senator Janek submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3560 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

JANEK SWINFORD
WILLIAMS RITTER
ELLIS GALLEGO
FRASER WOOLLEY
BRIMER CHISUM
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3560 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2823

Senator Patrick submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

4778 80th Legislature — Regular Session 68th Day


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2823 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

PATRICK BOHAC
BRIMER ANCHIA
CARONA BERMAN
JACKSON FARIAS
URESTI C. HOWARD
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2823 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 6

Senator Zaffirini submitted the following Conference Committee Report:

Austin, Texas

May 24, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi6 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

ZAFFIRINI PENA
HINOJOSA EISSLER
CARONA GUILLEN
ELTIFE RIDDLE
AVERITT
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to the apprehension, prosecution, and punishment of individuals committing or attempting to commit certain sex offenses, to the placement by public schools of certain students who are sex offenders, and to the notification requirements concerning certain offenses committed by students.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiArticle 15.27, Code of Criminal Procedure, is amended by adding Subsections (a-1) and (j) and amending Subsections (b) and (c) to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4779


(a-1)iiThe superintendent or a person designated by the superintendent in the school district may send to a school district employee having direct supervisory responsibility over the student the information contained in the confidential notice under Subsection (a) if the superintendent or the person designated by the superintendent determines that the employee needs the information for educational purposes or for the protection of the person informed or others.

(b)iiOn conviction, deferred prosecution, or deferred adjudication or an adjudication of delinquent conduct of an individual enrolled as a student in a public primary or secondary school, for an offense or for any conduct listed in Subsection (h) of this article, the office of the prosecuting attorney acting in the case shall orally notify the superintendent or a person designated by the superintendent in the school district in which the student is enrolled of the conviction or adjudication and whether the student is required to register as a sex offender under Chapter 62. Oral notification must be given within 24 hours of the time of the order or on the next school day. The superintendent shall, within 24 hours of receiving notification from the office of the prosecuting attorney, [promptly] notify all instructional and support personnel who have regular contact with the student. Within seven days after the date the oral notice is given, the office of the prosecuting attorney shall mail written notice, which must contain a statement of the offense of which the individual is convicted or on which the adjudication, deferred adjudication, or deferred prosecution is grounded and a statement of whether the student is required to register as a sex offender under Chapter 62.

(c)iiA parole, [or] probation, or community supervision office, including a community supervision and corrections department, a juvenile probation department, the pardons and paroles division of the Texas Department of Criminal Justice, and the Texas Youth Commission, having jurisdiction over a student described by Subsection (a), (b), or (e) who transfers from a school or is subsequently removed from a school and later returned to a school or school district other than the one the student was enrolled in when the arrest, referral to a juvenile court, conviction, or adjudication occurred shall within 24 hours of learning of the student's transfer or reenrollment notify the new school officials of the arrest or referral in a manner similar to that provided for by Subsection (a) or (e)(1), or of the conviction or delinquent adjudication in a manner similar to that provided for by Subsection (b) or (e)(2). The new school officials shall, within 24 hours of receiving notification under this subsection, [promptly] notify all instructional and support personnel who have regular contact with the student.

(j)iiThe notification provisions of this section concerning a person who is required to register as a sex offender under Chapter 62 do not lessen the requirement of a person to provide any additional notification prescribed by that chapter.

SECTIONi2.iiTitle 1, Code of Criminal Procedure, is amended by adding Chapter 24A to read as follows:

4780 80th Legislature — Regular Session 68th Day


CHAPTER 24A. RESPONDING TO SUBPOENAS AND CERTAIN OTHER COURT ORDERS; PRESERVING CERTAIN INFORMATION

SUBCHAPTER A. RESPONDING TO SUBPOENAS AND CERTAIN OTHER COURT ORDERS

Art.i24A.001.iiAPPLICABILITY OF SUBCHAPTER. This subchapter applies only to a subpoena, search warrant, or other court order that:

(1)iirelates to the investigation or prosecution of a criminal offense under Section 33.021, Penal Code; and

(2)iiis served on or issued with respect to an Internet service provider that provides service in this state.

Art.i24A.002.iiRESPONSE REQUIRED; DEADLINE FOR RESPONSE. (a)iiExcept as provided by Subsection (b), not later than the 10th day after the date on which an Internet service provider is served with or otherwise receives a subpoena, search warrant, or other court order described by Article 24A.001, the Internet service provider shall:

(1)iifully comply with the subpoena, warrant, or order; or

(2)iipetition a court to excuse the Internet service provider from complying with the subpoena, warrant, or order.

(b)iiAs soon as is practicable, and in no event later than the second business day after the date the Internet service provider is served with or otherwise receives a subpoena, search warrant, or other court order described by Article 24A.001, the Internet service provider shall fully comply with the subpoena, search warrant, or order if the subpoena, search warrant, or order indicates that full compliance is necessary to address a situation that threatens a person with death or other serious bodily injury.

(c)iiFor the purposes of Subsection (a)(1), full compliance with the subpoena, warrant, or order includes:

(1)iiproducing or providing, to the extent permitted under federal law, all documents or information requested under the subpoena, warrant, or order; or

(2)iiproviding, to the extent permitted under federal law, electronic access to all documents or information requested under the subpoena, warrant, or order.

Art.i24A.003.iiDISOBEYING SUBPOENA, WARRANT, OR ORDER. An Internet service provider that disobeys a subpoena, search warrant, or other court order described by Article 24A.001 and that was not excused from complying with the subpoena, warrant, or order under Article 24A.002(a)(2) may be punished in any manner provided by law.

[Articles 24A.004-24A.050 reserved for expansion]

SUBCHAPTER B. PRESERVING CERTAIN INFORMATION

Art.i24A.051.iiPRESERVING INFORMATION. (a)iiOn written request of a law enforcement agency in this state or a federal law enforcement agency and pending the issuance of a subpoena or other court order described by Article 24A.001, an Internet service provider that provides service in this state shall take all steps necessary to preserve all records or other potential evidence in a criminal trial that is in the possession of the Internet service provider.

Saturday, May 26, 2007 SENATE JOURNAL 4781


(b)iiSubject to Subsection (c), an Internet service provider shall preserve information under Subsection (a) for a period of 90 days after the date the Internet service provider receives the written request described by Subsection (a).

(c)iiAn Internet service provider shall preserve information under Subsection (a) for the 90-day period immediately following the 90-day period described by Subsection (b) if the requesting law enforcement agency in writing requests an extension of the preservation period.

SECTIONi3.iiChapter 37, Education Code, is amended by adding Subchapter I to read as follows:

SUBCHAPTER I. PLACEMENT OF REGISTERED SEX OFFENDERS

Sec.i37.301.iiDEFINITION. In this subchapter, "board of trustees" includes the board's designee.

Sec.i37.302.iiAPPLICABILITY. This subchapter:

(1)iiapplies to a student who is required to register as a sex offender under Chapter 62, Code of Criminal Procedure; and

(2)iidoes not apply to a student who is no longer required to register as a sex offender under Chapter 62, Code of Criminal Procedure, including a student who receives an exemption from registration under Subchapter H, Chapter 62, Code of Criminal Procedure, or a student who receives an early termination of the obligation to register under Subchapter I, Chapter 62, Code of Criminal Procedure.

Sec.i37.303.iiREMOVAL OF REGISTERED SEX OFFENDER FROM REGULAR CLASSROOM. Notwithstanding any provision of Subchapter A, on receiving notice under Article 15.27, Code of Criminal Procedure, or Chapter 62, Code of Criminal Procedure, that a student is required to register as a sex offender under that chapter, a school district shall remove the student from the regular classroom and determine the appropriate placement of the student in the manner provided by this subchapter.

Sec.i37.304.iiPLACEMENT OF REGISTERED SEX OFFENDER WHO IS UNDER COURT SUPERVISION. (a)iiA school district shall place a student to whom this subchapter applies and who is under any form of court supervision, including probation, community supervision, or parole, in the appropriate alternative education program as provided by Section 37.309 for at least one semester.

(b)iiIf a student transfers to another school district during the student's mandatory placement in an alternative education program under Subsection (a), the district to which the student transfers may:

(1)iirequire the student to complete an additional semester in the appropriate alternative education program without conducting a review of the student's placement for that semester under Section 37.306; or

(2)iicount any time spent by the student in an alternative education program in the district from which the student transfers toward the mandatory placement requirement under Subsection (a).

Sec.i37.305.iiPLACEMENT OF REGISTERED SEX OFFENDER WHO IS NOT UNDER COURT SUPERVISION. A school district may place a student to whom this subchapter applies and who is not under any form of court supervision in the appropriate alternative education program as provided by Section 37.309 for one

4782 80th Legislature — Regular Session 68th Day


semester or in the regular classroom. The district may not place the student in the regular classroom if the district board of trustees determines that the student's presence in the regular classroom:

(1)iithreatens the safety of other students or teachers;

(2)iiwill be detrimental to the educational process; or

(3)iiis not in the best interests of the district's students.

Sec.i37.306.iiREVIEW OF PLACEMENT IN ALTERNATIVE EDUCATION PROGRAM. (a)iiAt the end of the first semester of a student's placement in an alternative education program under Section 37.304 or 37.305, the school district board of trustees shall convene a committee to review the student's placement in the alternative education program. The committee must be composed of:

(1)iia classroom teacher from the campus to which the student would be assigned were the student not placed in an alternative education program;

(2)iithe student's parole or probation officer or, in the case of a student who does not have a parole or probation officer, a representative of the local juvenile probation department;

(3)iian instructor from the alternative education program to which the student is assigned;

(4)iia school district designee selected by the board of trustees; and

(5)iia counselor employed by the school district.

(b)iiThe committee by majority vote shall determine and recommend to the school district board of trustees whether the student should be returned to the regular classroom or remain in the alternative education program.

(c)iiIf the committee recommends that the student be returned to the regular classroom, the board of trustees shall return the student to the regular classroom unless the board determines that the student's presence in the regular classroom:

(1)iithreatens the safety of other students or teachers;

(2)iiwill be detrimental to the educational process; or

(3)iiis not in the best interests of the district's students.

(d)iiIf the committee recommends that the student remain in the alternative education program, the board of trustees shall continue the student's placement in the alternative education program unless the board determines that the student's presence in the regular classroom:

(1)iidoes not threaten the safety of other students or teachers;

(2)iiwill not be detrimental to the educational process; and

(3)iiis not contrary to the best interests of the district's students.

(e)iiIf, after receiving a recommendation under Subsection (b), the school district board of trustees determines that the student should remain in an alternative education program, the board shall before the beginning of each school year convene the committee described by Subsection (a) to review, in the manner provided by Subsections (b), (c), and (d), the student's placement in an alternative education program.

Sec.i37.307.iiPLACEMENT AND REVIEW OF STUDENT WITH DISABILITY. (a)iiThe placement under this subchapter of a student with a disability who receives special education services must be made in compliance with the Individuals with Disabilities Education Act (20 U.S.C. Section 1400 et seq.).

Saturday, May 26, 2007 SENATE JOURNAL 4783


(b)iiThe review under Section 37.306 of the placement of a student with a disability who receives special education services may be made only by a duly constituted admission, review, and dismissal committee. The admission, review, and dismissal committee may request that the board of trustees convene a committee described by Section 37.306(a) to assist the admission, review, and dismissal committee in conducting the review.

Sec.i37.308.iiTRANSFER OF REGISTERED SEX OFFENDER. Except as provided by Section 37.304(b), a school district shall determine whether to place a student to whom this subchapter applies and who transfers to the district in the appropriate alternative education program as provided by Section 37.309 or in a regular classroom. The school district shall follow the procedures specified under Section 37.306 in making the determination.

Sec.i37.309.iiPLACEMENT IN DISCIPLINARY ALTERNATIVE EDUCATION PROGRAM OR JUVENILE JUSTICE ALTERNATIVE EDUCATION PROGRAM. (a)iiExcept as provided by Subsection (b), a school district shall place a student who is required by the board of trustees to attend an alternative education program under this subchapter in a disciplinary alternative education program.

(b)iiA school district shall place a student who is required by the board of trustees to attend an alternative education program under this subchapter in a juvenile justice alternative education program if:

(1)iithe memorandum of understanding entered into between the school district and juvenile board under Section 37.011(k) provides for the placement of students to whom this subchapter applies in the juvenile justice alternative education program; or

(2)iia court orders the placement of the student in a juvenile justice alternative education program.

Sec.i37.310.iiFUNDING FOR REGISTERED SEX OFFENDER PLACED IN JUVENILE JUSTICE ALTERNATIVE EDUCATION PROGRAM. A juvenile justice alternative education program is entitled to funding for a student who is placed in the program under this subchapter in the same manner as a juvenile justice alternative education program is entitled to funding under Section 37.012 for a student who is expelled and placed in a juvenile justice alternative education program for conduct for which expulsion is permitted but not required under Section 37.007.

Sec.i37.311.iiCONFERENCE. (a)iiA student or the student's parent or guardian may appeal a decision by a school district board of trustees to place the student in an alternative education program under this subchapter by requesting a conference among the board of trustees, the student's parent or guardian, and the student. The conference is limited to the factual question of whether the student is required to register as a sex offender under Chapter 62, Code of Criminal Procedure.

(b)iiIf the school district board of trustees determines at the conclusion of the conference that the student is required to register as a sex offender under Chapter 62, Code of Criminal Procedure, the student is subject to placement in an alternative education program in the manner provided by this subchapter.

(c)iiA decision by the board of trustees under this section is final and may not be appealed.

4784 80th Legislature — Regular Session 68th Day


Sec.i37.312.iiLIABILITY. This subchapter does not:

(1)iiwaive any liability or immunity of a governmental entity or its officers or employees; or

(2)iicreate any liability for or a cause of action against a governmental entity or its officers or employees.

Sec.i37.313.iiCONFLICTS OF LAW. To the extent of any conflict between a provision of this subchapter and a provision of Subchapter A, this subchapter prevails.

SECTIONi4.iiSubchapter B, Chapter 402, Government Code, is amended by adding Section 402.0281 to read as follows:

Sec.i402.0281.iiINTERNET SERVICE PROVIDER DATABASE. (a)iiThe attorney general shall establish a computerized database containing contact information for all Internet service providers providing service in this state. The contact information must include:

(1)iithe name and physical address of the person authorized to accept service of process for the Internet service provider; and

(2)iithe physical address of the Internet service provider's principal place of business in this state.

(b)iiAt the request of a district attorney, criminal district attorney, county attorney, law enforcement agency of this state, or local law enforcement agency, the attorney general shall allow the requestor access to the database to expedite the information-gathering process of a criminal investigation conducted by the requestor concerning an offense under Section 33.021, Penal Code.

SECTIONi5.iiSection 414.005, Government Code, is amended to read as follows:

Sec.i414.005.iiDUTIES. The council shall:

(1)iiencourage, advise, and assist in the creation of crime stoppers organizations;

(2)iifoster the detection of crime and encourage persons to report information about criminal acts;

(3)iiencourage news and other media to broadcast reenactments and to inform the public of the functions of crime stoppers organizations' operations and programs;

(4)iipromote the process of crime stoppers organizations to forward information about criminal acts to the appropriate law enforcement agencies; [and]

(5)iihelp law enforcement agencies detect and combat crime by increasing the flow of information to and between law enforcement agencies;

(6)iicreate specialized programs targeted at detecting specific crimes or types of crimes, including at least one program that:

(A)iiencourages individuals to report sex offenders who have failed to register under Chapter 62, Code of Criminal Procedure; and

(B)iifinancially rewards each individual who makes a report described by Paragraph (A) that leads or substantially contributes to the arrest or apprehension of a sex offender who has failed to register under Chapter 62, Code of Criminal Procedure; and

Saturday, May 26, 2007 SENATE JOURNAL 4785


(7)iiencourage, advise, and assist crime stoppers organizations in implementing any programs created under Subdivision (6), including a program specifically described by Subdivision (6).

SECTIONi6.iiSubsection (b), Section 3.03, Penal Code, is amended to read as follows:

(b)iiIf the accused is found guilty of more than one offense arising out of the same criminal episode, the sentences may run concurrently or consecutively if each sentence is for a conviction of:

(1)iian offense:

(A)iiunder Section 49.07 or 49.08, regardless of whether the accused is convicted of violations of the same section more than once or is convicted of violations of both sections; or

(B)iifor which a plea agreement was reached in a case in which the accused was charged with more than one offense listed in Paragraph (A), regardless of whether the accused is charged with violations of the same section more than once or is charged with violations of both sections;

(2)iian offense:

(A)iiunder Section 33.021 or an offense under Section 21.11, 22.011, 22.021, 25.02, or 43.25 committed against a victim younger than 17 years of age at the time of the commission of the offense regardless of whether the accused is convicted of violations of the same section more than once or is convicted of violations of more than one section; or

(B)iifor which a plea agreement was reached in a case in which the accused was charged with more than one offense listed in Paragraph (A) committed against a victim younger than 17 years of age at the time of the commission of the offense regardless of whether the accused is charged with violations of the same section more than once or is charged with violations of more than one section; or

(3)iian offense:

(A)iiunder Section 21.15 or 43.26, regardless of whether the accused is convicted of violations of the same section more than once or is convicted of violations of both sections; or

(B)iifor which a plea agreement was reached in a case in which the accused was charged with more than one offense listed in Paragraph (A), regardless of whether the accused is charged with violations of the same section more than once or is charged with violations of both sections.

SECTIONi7.iiSubsection (f), Section 33.021, Penal Code, is amended to read as follows:

(f)iiAn offense under Subsection (b) is a [state jail] felony of the third degree, except that the offense is a felony of the second degree if the minor is younger than 14 years of age or is an individual whom the actor believes to be younger than 14 years of age at the time of the commission of the offense. An[, and an] offense under Subsection (c) is a felony of the second [third] degree[, except that an offense under Subsection (b) or (c) is a felony of the second degree if the minor is younger than 14 years of age or is an individual whom the actor believes to be younger than 14 years of age].

4786 80th Legislature — Regular Session 68th Day


SECTIONi8.iiSubsection (d), Article 15.27, Code of Criminal Procedure, is repealed.

SECTIONi9.iiSubchapter I, Chapter 37, Education Code, as added by this Act, applies only to an offense committed on or after the effective date of this Act. An offense committed before the effective date of this Act is governed by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense was committed before the effective date of this Act if any element of the offense occurred before that date.

SECTIONi10.iiThe attorney general shall ensure that the database required under Section 402.0281, Government Code, as added by this Act, is fully operational not later than April 1, 2008, and not later than June 1, 2008, shall begin allowing requesting parties access to that database as described by that section.

SECTIONi11.iiSubsection (b), Section 3.03, and Subsection (f), Section 33.021, Penal Code, as amended by this Act, apply only to an offense committed on or after September 1, 2007. An offense committed before September 1, 2007, is covered by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For the purposes of this section, an offense was committed before September 1, 2007, if any element of the offense occurred before that date.

SECTIONi12.iiThis Act takes effect September 1, 2007.

The Conference Committee Report on SBi6 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1604

Senator Duncan submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi1604 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

DUNCAN BONNEN
AVERITT DRIVER
HEGAR KUEMPEL
JACKSON
SELIGER
On the part of the Senate On the part of the House

Saturday, May 26, 2007 SENATE JOURNAL 4787


A BILL TO BE ENTITLED

AN ACT

relating to responsibilities of certain state agencies concerning radioactive substances; imposing fees and surcharges; providing administrative and civil penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 401.003, Health and Safety Code, is amended by amending Subdivisions (2), (4), (5), and (6) and by adding Subdivision (12-a) to read as follows:

(2)ii"Board" means the executive commissioner of the Health and Human Services Commission [Texas Board of Health].

(4)ii"Commission" means the Texas [Natural Resource Conservation] Commission on Environmental Quality.

(5)ii"Commissioner" means the commissioner of state [public] health services.

(6)ii"Department" means the [Texas] Department of State Health Services or other department designated by the executive commissioner of the Health and Human Services Commission.

(12-a)ii"Gross receipts" includes, with respect to an entity or affiliated members, owners, shareholders, or limited or general partners, all receipts from the entity's disposal operations in Texas licensed under this chapter including any bonus, commission, or similar payment received by the entity from a customer, contractor, subcontractor, or other person doing business with the entity or affiliated members, owners, shareholders, or limited or general partners. This term does not include receipts from the entity's operations in Texas, or affiliated members, owners, shareholders, or limited or general partners, for capital reimbursements, bona fide storage and processing, and federal or state taxes or fees on waste received uniquely required to meet the specifications of a license or contract. The commission may promulgate rules in establishing the criteria for determining gross receipts consistent with the parameters of this definition.

SECTIONi2.iiSubsections (a) and (b), Section 401.011, Health and Safety Code, are amended to read as follows:

(a)iiThe department is the Texas Radiation Control Agency. The department has jurisdiction over activities and substances regulated under this chapter except as provided by Subsection (b) and Subchapters E, F, G, and K.

(b)iiThe commission has jurisdiction to regulate and license:

(1)iithe disposal of radioactive substances;

(2)iithe processing or storage of low-level radioactive waste or naturally occurring radioactive material waste received from other persons, except oil and gas NORM;

(3)iithe recovery or processing of source material in accordance with Subchapter G;

(4)iithe processing of by-product material as defined by Section 401.003(3)(B); and

(5)iisites for the disposal of:

(A)iilow-level radioactive waste;

(B)iiby-product material; or

4788 80th Legislature — Regular Session 68th Day


(C)iinaturally occurring radioactive material waste [except by-product material defined by Section 401.003(3)(B)].

SECTIONi3.iiSection 401.104, Health and Safety Code, is amended by amending Subsection (b) and adding Subsection (f) to read as follows:

(b)iiExcept as provided by Subsection (e), the commission by rule shall provide for licensing for the disposal of radioactive substances [material except for the disposal of by-product material defined by Section 401.003(3)(B). The department by rule shall provide for licensing the disposal of by-product material defined by Section 401.003(3)(B)].

(f)iiA separate commercial storage and processing license may be issued for a site also licensed for disposal under this chapter.

SECTIONi4.iiSubsection (a), Section 401.106, Health and Safety Code, is amended to read as follows:

(a)iiThe board or commission by rule may exempt a source of radiation or a kind of use or user from the licensing or registration requirements provided by this chapter and under the agency's jurisdiction if the board or commission finds that the exemption of that source of radiation or kind of use or user will not constitute a significant risk to the public health and safety and the environment.

SECTIONi5.iiSection 401.108, Health and Safety Code, is amended to read as follows:

Sec.i401.108.iiFINANCIAL QUALIFICATIONS. (a)iiBefore a license is issued or renewed by the commission, the applicant shall demonstrate to the commission that the applicant is financially qualified to conduct the licensed activity, including any required decontamination, decommissioning, reclamation, and disposal, by posting security acceptable to the commission. [The board by rule shall require an applicant to demonstrate to the department that the applicant is financially qualified to conduct the licensed activity, including any required decontamination, decommissioning, reclamation, and disposal, before the department issues or renews a license.]

(b)iiA license holder shall submit to the department or commission, as appropriate, at intervals required by board or commission rules or the license, proof that the license holder has updated, as appropriate, the security posted under Subsection (a) [of the license holder's financial qualifications].

(c)iiThe [department or] commission at regular intervals not to exceed five years shall reevaluate [every five years] the qualifications and security provided by a license holder under Subchapter F or Subchapter G. The reevaluation may coincide with license renewal procedures if renewal and reevaluation occur in the same year.

SECTIONi6.iiSubsection (b), Section 401.109, Health and Safety Code, is amended to read as follows:

(b)iiThe [department or] commission shall require a holder of a license that authorizes the disposal of radioactive substances [low-level radioactive waste as provided by Subchapter F] to provide security acceptable to the commission [agency] to assure performance of the license holder's obligations under this chapter.

SECTIONi7.iiSection 401.111, Health and Safety Code, is amended to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4789


Sec.i401.111.iiCRITERIA FOR CERTAIN UNSUITABLE NEW SITES. (a)iiThe [board and] commission [each], in adopting rules for the issuance of licenses under the commission's jurisdiction [their respective jurisdictions] for new sites for processing or disposal of radioactive substances [low-level radioactive waste] from other persons, shall adopt criteria for the designation of unsuitable sites, including:

(1)iiflood hazard areas;

(2)iiareas with characteristics of discharge from or recharge of a groundwater aquifer system; or

(3)iiareas in which soil conditions make spill cleanup impracticable.

(b)iiThe [board and] commission [each] shall consult with the Texas Water Development Board, the State Soil and Water Conservation Board, the Bureau of Economic Geology, and other appropriate state agencies in developing proposed rules. The [board and] commission [each] by rule shall:

(1)iirequire selection of sites in areas in which natural conditions minimize potential contamination of surface water and groundwater; and

(2)iiprohibit issuance of licenses for unsuitable sites as defined by the rules.

SECTIONi8.iiSection 401.112, Health and Safety Code, is amended to read as follows:

Sec.i401.112.iiLOW-LEVEL RADIOACTIVE WASTE PROCESSING OR DISPOSAL LICENSE APPLICATION AND CONSIDERATIONS. (a)iiThe [department or] commission[, within its jurisdiction], in making a licensing decision on a specific license application to process or dispose of low-level radioactive waste from other persons, shall consider:

(1)iisite suitability, geological, hydrological, and meteorological factors, and natural [naturals] hazards;

(2)iicompatibility with present uses of land near the site;

(3)iisocioeconomic effects on surrounding communities of operation of the licensed activity and of associated transportation of low-level radioactive waste;

(4)iithe need for and alternatives to the proposed activity, including an alternative siting analysis prepared by the applicant;

(5)iithe applicant's qualifications, including:

(A)iifinancial and technical qualifications and compliance history under the method for evaluation of compliance history developed by the commission under Section 5.754, Water Code, for an application to the commission; and

(B)iithe demonstration of financial qualifications under Section 401.108 [or the requirements of Section 401.110(b) for an application to the department];

(6)iibackground monitoring plans for the proposed site;

(7)iisuitability of facilities associated with the proposed activities;

(8)iichemical, radiological, and biological characteristics of the low-level radioactive waste and waste classification under Section 401.053;

(9)iiadequate insurance of the applicant to cover potential injury to any property or person, including potential injury from risks relating to transportation;

(10)iitraining programs for the applicant's employees;

(11)iia monitoring, record-keeping, and reporting program;

(12)iispill detection and cleanup plans for the licensed site and related to associated transportation of low-level radioactive waste;

4790 80th Legislature — Regular Session 68th Day


(13)iidecommissioning and postclosure care plans;

(14)iisecurity plans;

(15)iiworker monitoring and protection plans;

(16)iiemergency plans; and

(17)iia monitoring program for applicants that includes prelicense and postlicense monitoring of background radioactive and chemical characteristics of the soils, groundwater, and vegetation.

(b)iiAn applicant for the specific license must submit with the application information necessary for the commission [issuing agency] to consider the factors under Subsection (a).

(c)iiThe [board and] commission [each within its jurisdiction] by rule shall provide specific criteria for the different types of licensed low-level radioactive waste activities for the listed factors and may include additional factors and criteria that the [board or] commission[, as appropriate,] determines necessary for full consideration of a license.

SECTIONi9.iiSubsections (a) and (b), Section 401.113, Health and Safety Code, are amended to read as follows:

(a)iiBefore a hearing under Section 401.114 begins, the commission [agency holding the hearing] shall prepare or have prepared a written analysis of the effect on the environment of a proposed licensed activity that the commission [agency] determines has a significant effect on the human environment.

(b)iiThe commission [agency] shall make the analysis available to the public not later than the 31st day before the date of a hearing under Section 401.114.

SECTIONi10.iiSection 401.114, Health and Safety Code, is amended to read as follows:

Sec.i401.114.iiNOTICE AND HEARING. (a)iiBefore the [department or] commission[, within its jurisdiction,] grants or renews a license to process or dispose of low-level radioactive waste from other persons, the commission [agency] shall give notice and shall provide an opportunity for a public hearing in the manner provided by the commission's [agency's] formal hearing procedure and Chapter 2001, Government Code.

(b)iiIn addition to other notice, the commission [agency] shall publish notice of the hearing in the manner provided by Chapter 313, Government Code, in the county in which the proposed facility is to be located. The notice shall state the subject and the time, place, and date of the hearing.

(c)iiThe commission [agency] shall mail, by certified mail in the manner provided by the commission's [agency's] rules, written notice to each person who owns property adjacent to the proposed site. The notice must be mailed not later than the 31st day before the date of the hearing and must include the same information that is in the published notice. If true, the commission [agency] or the applicant must certify that the notice was mailed as required by this subsection, and at the hearing the certificate is conclusive evidence of the mailing.

SECTIONi11.iiSection 401.117, Health and Safety Code, is amended to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4791


Sec.i401.117.iiCONSTRUCTION LIMITATION. The [department or] commission shall prohibit major construction relating to activities to be permitted under a license issued by the commission [agency] to process or dispose of low-level radioactive waste from other persons until the requirements in Sections 401.113 and 401.114 are completed.

SECTIONi12.iiSubsection (a), Section 401.202, Health and Safety Code, is amended to read as follows:

(a)iiThe commission [or department, within its respective jurisdiction,] may grant, deny, renew, revoke, suspend, or withdraw licenses for the disposal of low-level radioactive waste from other persons and for the processing of that waste.

SECTIONi13.iiSection 401.262, Health and Safety Code, is amended to read as follows:

Sec.i401.262.iiMANAGEMENT OF CERTAIN BY-PRODUCT MATERIAL. The commission [department] has sole and exclusive authority to assure that processing and disposal sites are closed and that by-product material is managed and disposed of in compliance with:

(1)iithe federal commission's applicable standards; and

(2)iiclosure criteria the federal commission and the United States Environmental Protection Agency have determined are protective of human health and safety and the environment.

SECTIONi14.iiSection 401.2625, Health and Safety Code, is amended to read as follows:

Sec.i401.2625.iiLICENSING AUTHORITY. The commission [commissioner] has sole and exclusive authority to grant, deny, renew, revoke, suspend, amend, or withdraw licenses for source material recovery and processing or for storage, processing, or disposal of by-product material.

SECTIONi15.iiSubsections (a) and (c) through (f), Section 401.263, Health and Safety Code, are amended to read as follows:

(a)iiIf the commission [department] is considering the issuance, renewal, or amendment of a license to process materials that produce by-product materials or a license to dispose of by-product material and the commission [department] determines that the licensed activity will have a significant impact on the human environment, the commission [department] shall prepare or have prepared a written environmental analysis.

(c)iiThe commission [department] shall give notice of the analysis as provided by commission [board] rule and shall make the analysis available to the public for written comment not later than the 31st day before the date of the hearing on the license.

(d)iiAfter notice is given, the commission [department] shall provide an opportunity for written comments by persons affected.

(e)iiThe analysis shall be included as part of the record of the commission's [department's] proceedings.

(f)iiThe commission [board] by rule shall prohibit major construction with respect to an activity that is to be licensed until the requirements of Subsections (a), (b), (c), and (e) are completed.

4792 80th Legislature — Regular Session 68th Day


SECTIONi16.iiSubsections (a), (c), and (d), Section 401.264, Health and Safety Code, are amended to read as follows:

(a)iiThe commission [department] on its own motion may or on the written request of a person affected shall provide an opportunity for a public hearing on an application over which the commission [department] has jurisdiction to determine whether to issue, renew, or amend a license to process materials that produce by-product materials or a license to dispose of by-product materials in the manner provided by Chapter 2001, Government Code, and permit appearances with or without counsel and the examination and cross-examination of witnesses under oath.

(c)iiThe commission [department] shall make a record of the proceedings and provide a transcript of the hearing on request of, and payment for, the transcript or provision of a sufficient deposit to assure payment by any person requesting the transcript.

(d)iiThe commission [department] shall provide an opportunity to obtain a written determination of action to be taken. The determination must be based on evidence presented to the commission [department] and include findings. The written determination is available to the public.

SECTIONi17.iiSection 401.265, Health and Safety Code, is amended to read as follows:

Sec.i401.265.iiCONDITIONS OF CERTAIN BY-PRODUCT MATERIAL LICENSES. The commission [department] shall prescribe conditions in a radioactive substances [material] license issued, renewed, or amended for an activity that results in production of by-product material to minimize or, if possible, eliminate the need for long-term maintenance and monitoring before the termination of the license, including conditions that:

(1)iithe license holder will comply with the applicable decontamination, decommissioning, reclamation, and disposal standards that are prescribed by the commission [board] and that are compatible with the federal commission's standards for sites at which those ores were processed and at which the by-product material is deposited; and

(2)iithe ownership of a disposal site, other than a disposal well covered by a permit issued under Chapter 27, Water Code, and the by-product material resulting from the licensed activity are transferred, subject to Sections 401.266-401.269, to:

(A)iithe state; or

(B)iithe federal government if the state declines to acquire the site, the by-product material, or both the site and the by-product material.

SECTIONi18.iiSubsection (a), Section 401.266, Health and Safety Code, is amended to read as follows:

(a)iiThe commission [board] by rule or [order or the department by] order may require that before a license covering land used for the disposal of by-product material is terminated, the land, including any affected interests in the land, must be transferred to the federal government or to the state unless:

(1)iithe federal commission determines before the license terminates that the transfer of title to the land and the by-product material is unnecessary to protect the public health, safety, or welfare or to minimize danger to life or property; or

Saturday, May 26, 2007 SENATE JOURNAL 4793


(2)iithe land is held in trust by the federal government for an Indian tribe, is owned by an Indian tribe subject to a restriction against alienation imposed by the federal government, is owned by the federal government, or is owned by the state.

SECTIONi19.iiSection 401.267, Health and Safety Code, is amended to read as follows:

Sec.i401.267.iiACQUISITION AND SALE OF CERTAIN BY-PRODUCT MATERIALS AND SITES. (a)iiThe commission [department] may acquire by-product material and fee simple title in land, affected mineral rights, and buildings at which that by-product material is disposed of and abandoned so that the by-product material and property can be managed in a manner consistent with protecting public health, safety, and the environment.

(b)iiThe commission [department] may sell land acquired under this section at the land's fair market value after the commission [department] has taken corrective action to restore the land to a condition that does not compromise the public health or safety or the environment. The General Land Office shall negotiate and close a transaction under this subsection on behalf of the commission [department] using procedures under Section 31.158(c), Natural Resources Code. Proceeds from the transaction shall be deposited in the Texas capital trust fund.

SECTIONi20.iiSection 401.269, Health and Safety Code, is amended to read as follows:

Sec.i401.269.iiMONITORING, MAINTENANCE, AND EMERGENCY MEASURES. (a)iiThe commission [department] may undertake monitoring, maintenance, and emergency measures in connection with by-product material and property for which it has assumed custody under Section 401.267 that are necessary to protect the public health and safety and the environment.

(b)iiThe commission [department] shall maintain the by-product material and property transferred to it in a manner that will protect the public health and safety and the environment.

SECTIONi21.iiSubsections (a), (b), (e), and (f), Section 401.270, Health and Safety Code, are amended to read as follows:

(a)iiIf the commission [department] finds that by-product material or the operation by which that by-product material is derived threatens the public health and safety or the environment, the commission [department] by order may require any action, including a corrective measure, that is necessary to correct or remove the threat.

(b)iiThe commission [department] may issue an emergency order to a person responsible for an activity, including a past activity, concerning the recovery or processing of source material or the disposal of by-product material if it appears that there is an actual or threatened release of source material or by-product material that presents an imminent and substantial danger to the public health and safety or the environment, regardless of whether the activity was lawful at the time. The emergency order may be issued without notice or hearing.

(e)iiThe commission [department] shall use the security provided by the license holder to pay the costs of actions that are taken or that are to be taken under this section. The commission [department] shall send to the comptroller a copy of its order together with necessary written requests authorizing the comptroller to:

4794 80th Legislature — Regular Session 68th Day


(1)iienforce security supplied by the licensee;

(2)iiconvert an amount of security into cash, as necessary; and

(3)iidisburse from the security in the perpetual care account the amount necessary to pay the costs.

(f)iiIf an order issued by the commission [department] under this section is adopted without notice or hearing, the order shall set a time, at least 10 but not more than 30 days following the date of issuance of the emergency order, and a place for a hearing to be held in accordance with the rules of the commission [board]. As a result of this hearing, the commission [department] shall decide whether to affirm, modify, or set aside the emergency order. All provisions of the emergency order shall remain in force and effect during the pendency of the hearing, unless otherwise altered by the commission [department].

SECTIONi22.iiSubchapter G, Chapter 401, Health and Safety Code, is amended by adding Sections 401.271 and 401.272 to read as follows:

Sec.i401.271.iiSTATE FEE ON RADIOACTIVE SUBSTANCES. (a)iiA holder of a license issued by the commission under this chapter that authorizes the disposal of a radioactive substance from other persons shall remit each quarter an amount equal to 10 percent of the license holder's gross receipts received from disposal operations under a license issued under this chapter that occur after the effective date of the Act enacting this section as follows:

(1)iifive percent shall be remitted to the comptroller for deposit to the credit of the general revenue fund; and

(2)iifive percent shall be remitted to the host county in accordance with Sections 401.244(b) and (d).

(b)iiSubsection (a) does not apply to compact waste or federal facility waste as defined by Section 401.2005 or industrial solid waste as defined by Section 361.003.

Sec.i401.272.iiAUDIT AUTHORITY. The commission may audit a license holder's financial records and waste manifest information to ensure that the fees imposed under this chapter are accurately paid. The license holder shall comply with the commission's audit-related requests for information.

SECTIONi23.iiSection 401.301, Health and Safety Code, is amended to read as follows:

Sec.i401.301.iiLICENSE AND REGISTRATION FEES [COLLECTED BY DEPARTMENT]. (a)iiThe commission and department may collect a fee for each license and registration the agency [it] issues.

(b)iiThe commission and the board each by rule shall set the fee in an amount that may not exceed the actual expenses annually incurred to:

(1)iiprocess applications for licenses or registrations;

(2)iiamend or renew licenses or registrations;

(3)iimake inspections of license holders and registrants; and

(4)iienforce this chapter and rules, orders, licenses, and registrations under this chapter.

(c)iiThe commission and department may collect a fee, in addition to the annual license and registration fee, of not less than 20 percent of the amount of the annual license and registration fee nor more than $10,000 per annum from each licensee or registrant who fails to pay the fees authorized by this section.

Saturday, May 26, 2007 SENATE JOURNAL 4795


(d)iiThe commission and department may require that each person who holds a specific license issued by the agency [department] annually pay to the agency [department] an additional five percent of the appropriate annual fee set under Subsection (b). Fees collected under this subsection shall be deposited to the credit of the perpetual care account. The fees are not refundable.

(e)iiThe commission and department shall suspend assessment of a fee imposed under Subsection (d) if the amount of fees collected under that subsection reaches $500,000. If the balance of fees collected subsequently is reduced to $350,000 or less, the commission and department shall reinstitute assessment of the fee until the balance reaches $500,000.

(f)iiThe commission may assess and collect additional fees from the applicant to recover the costs the commission incurs for administrative review, technical review, and hearings on the application.

SECTIONi24.iiSubsection (a), Section 401.302, Health and Safety Code, is amended to read as follows:

(a)iiThe department, in coordination with the commission, may set and collect an annual fee from the operator of each nuclear reactor or other fixed nuclear facility in the state that uses special nuclear material.

SECTIONi25.iiSubsections (c), (e), (f), and (g), Section 401.305, Health and Safety Code, are amended to read as follows:

(c)iiMoney and security in the perpetual care account may be administered by the department or commission only for the decontamination, decommissioning, stabilization, reclamation, maintenance, surveillance, control, storage, and disposal of radioactive substances [material] for the protection of the public health and safety and the environment under this chapter and for refunds under Section 401.303.

(e)iiThe department or commission may use money in the perpetual care account to pay for measures:

(1)iito prevent or mitigate the adverse effects of abandonment of radioactive substances [materials], default on a lawful obligation, insolvency, or other inability by the holder of a license issued by the department or commission to meet the requirements of this chapter or of department or commission rules; and

(2)iito assure the protection of the public health and safety and the environment from the adverse effects of ionizing radiation.

(f)iiThe department or commission may provide, by the terms of a contract or lease entered into between the department or commission and any person or by the terms of a license issued by the department or commission to any person, for the decontamination, closure, decommissioning, reclamation, surveillance, or other care of a site or facility subject to department or commission jurisdiction under this chapter as needed to carry out the purpose of this chapter.

(g)iiThe existence of the perpetual care account does not make the department or commission liable for the costs of decontamination, transfer, transportation, reclamation, surveillance, or disposal of radioactive substances [material] arising from a license holder's abandonment of radioactive substances [material], default on a lawful obligation, insolvency, or inability to meet the requirements of this chapter or of department or commission rules.

4796 80th Legislature — Regular Session 68th Day


SECTIONi26.iiSection 401.343, Health and Safety Code, is amended to read as follows:

Sec.i401.343.iiRECOVERY OF SECURITY. (a)iiThe department or commission shall seek reimbursement, either by an order of the department or commission or a suit filed by the attorney general at the [department's] request of the department or commission, of security from the perpetual care account used by the department or commission to pay for actions, including corrective measures, to remedy spills or contamination by radioactive substances [material] resulting from a violation of this chapter relating to an activity under the [department's] jurisdiction of the department or commission or a violation of a rule, license, registration, or order adopted or issued by the department or commission under this chapter.

(b)iiOn request by the department or commission, the attorney general shall file suit to recover security under this section.

SECTIONi27.iiThe heading to Subchapter K, Chapter 401, Health and Safety Code, is amended to read as follows:

SUBCHAPTER K. LICENSING AUTHORITY OF TEXAS [NATURAL RESOURCE CONSERVATION] COMMISSION ON ENVIRONMENTAL QUALITY AND THE RAILROAD COMMISSION OF TEXAS

SECTIONi28.iiSubsections (a) and (b), Section 401.412, Health and Safety Code, are amended to read as follows:

(a)iiNotwithstanding any other provision of this chapter and subject to Sections 401.102 and 401.415, the commission has sole and exclusive authority to directly regulate and to grant, deny, renew, revoke, suspend, amend, or withdraw licenses for the disposal of radioactive substances. [In this subsection, "radioactive substance" does not include by-product material as defined by Section 401.003(3)(B).]

(b)iiNotwithstanding any other provision of this chapter, the commission [commissioner] has the sole and exclusive authority to grant, deny, renew, revoke, suspend, amend, or withdraw licenses for the recovery and processing of source material or disposal of by-product material under Subchapter G.

SECTIONi29.iiSection 401.413, Health and Safety Code, is amended to read as follows:

Sec.i401.413.iiCOMMISSION DISPOSAL LICENSE REQUIRED. A person required by another section of this chapter to obtain a license for the disposal of a radioactive substance is required to obtain the license from the commission and not from the department. [This section does not apply to a person required to obtain a license for recovery or processing of source material or for recovery, processing, or disposal of by-product material as defined by Section 401.003(3)(B).]

SECTIONi30.iiSection 401.414, Health and Safety Code, is amended to read as follows:

Sec.i401.414.iiMEMORANDA [MEMORANDUM] OF UNDERSTANDING. The Texas [Natural Resource Conservation] Commission on Environmental Quality, the Health and Human Services Commission, and the Railroad Commission of Texas [and the board of health] by rule shall adopt memoranda [a memorandum] of understanding defining their respective duties under this chapter.

SECTIONi31.iiSection 361.015, Health and Safety Code, is amended to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4797


Sec.i361.015.iiJURISDICTION: RADIOACTIVE WASTE. (a)iiThe commission is the state agency under Chapter 401 that licenses and regulates radioactive waste storage, processing, and disposal activities not preemptively regulated by the federal government.

(b)iiExcept as provided by Subsection (a), the Health and Human Services Commission, acting through the Department of State Health Services or other department as designated by the executive commissioner of the Health and Human Services Commission, [The Texas Department of Health] is the state agency under Chapter 401 that regulates radioactive waste activities[, excluding disposal,] not preemptively regulated by the federal government.

SECTIONi32.iiSubchapter D, Chapter 27, Water Code, is amended by adding Section 27.0513 to read as follows:

Sec.i27.0513.iiAREA PERMITS AND PRODUCTION AREAS FOR URANIUM MINING. (a)iiThe commission may issue a permit pursuant to Section 27.011 that authorizes the construction and operation of two or more similar injection wells within a specified area for mining of uranium. An application for a new permit issued pursuant to Section 27.011, a major amendment of such a permit, or a renewal of such a permit for mining of uranium is subject to the public notice requirements and opportunity for contested case hearing provided under Section 27.018.

(b)iiFor a permit for mining of uranium issued on or after September 1, 2007, pursuant to Section 27.011, the term of the permit to authorize injection for recovery of uranium shall be 10 years. The holder of a permit for mining of uranium issued by the commission before September 1, 2007, pursuant to Section 27.011, must submit an application to the commission before September 1, 2012, for renewal of the permit to authorize construction and operation of injection wells for mining of uranium. Authority to construct or operate injection wells for recovery of uranium under a permit issued before September 1, 2007, pursuant to Section 27.011, expires on September 1, 2012, if an application for renewal of the permit is not submitted to the commission before September 1, 2012. Expiration of authority under this subsection does not relieve the permit holder from obligations under the permit or applicable rules, including obligations to restore groundwater and to plug and abandon wells in accordance with the requirements of the permit and applicable rules.

(c)iiThe commission may issue a holder of a permit issued pursuant to Section 27.011 for mining of uranium an authorization that allows the permit holder to conduct mining and restoration activities in production zones within the boundary established in the permit. The commission by rule shall establish application requirements, technical requirements, including the methods for determining restoration table values, and procedural requirements for any authorization.

(d)iiNotwithstanding Sections 5.551, 5.556, 27.011, and 27.018, an application for an authorization submitted after September 1, 2007, is an uncontested matter not subject to a contested case hearing or the hearing requirements of Chapter 2001, Government Code, unless the authorization seeks any of the following:

(1)iian amendment to a restoration table value;

4798 80th Legislature — Regular Session 68th Day


(2)iian amendment to the establishment of monitoring wells for any area covered by the authorization, including the location, number, depth, spacing, and design of the monitoring wells, in a manner which the executive director deems to provide inadequate or less effective assurance of containment of mine zone fluids; or

(3)iian amendment to the type or amount of bond required by Section 27.073 to assure that there are sufficient funds available to the state for plugging of abandoned wells in the area by a third-party contractor if the executive director determines the permittee is at risk of bankruptcy or will otherwise not be available to plug the abandoned wells.

(e)iiAn application seeking approval under Subsections (d)(1)-(3) is subject to the public notice and contested hearing requirements provided in Section 27.018.

SECTIONi33.ii(a)iiOn the effective date of this Act, the following rights, powers, duties, obligations, functions, activities, property, programs, and appropriations are transferred to the Texas Commission on Environmental Quality:

(1)iiall rights, powers, duties, obligations, functions, and activities:

(A)iithat Chapter 401, Health and Safety Code, assigns to the Texas Department of Health, the Texas Board of Health, or their successor agencies or to the governing body, officers, or employees of that department, that board, or their successor agencies, including the Health and Human Services Commission and the Department of State Health Services; and

(B)iithat are related to licensing and regulation of:

(i)iiradioactive substances recovery, storage, processing, and disposal; or

(ii)iilong-term care of decommissioned sites for disposal of by-product material;

(2)iiall equipment, information, documents, facilities, and other property of the Health and Human Services Commission or the Department of State Health Services pertaining to licensing and regulation of:

(A)iiradioactive substances recovery, storage, processing, and disposal under the jurisdiction of the Texas Commission on Environmental Quality as provided by Subsection (b), Section 401.011, Health and Safety Code, as amended by this Act; or

(B)iilong-term care of decommissioned sites for disposal of by-product material;

(3)iiall appropriations for the state fiscal biennium that begins Septemberi1, 2007, made to the Health and Human Services Commission or the Department of State Health Services for activities related to licensing and regulation of:

(A)iiradioactive substances recovery, storage, processing, and disposal under the jurisdiction of the Texas Commission on Environmental Quality as provided by Subsection (b), Section 401.011, Health and Safety Code, as amended by this Act; or

(B)iilong-term care of decommissioned sites for disposal of by-product material; and

Saturday, May 26, 2007 SENATE JOURNAL 4799


(4)iithe unexpended and unobligated portions of the appropriations for the state fiscal biennium beginning Septemberi1, 2005, made to the Health and Human Services Commission or the Department of State Health Services for activities described by Subdivision (3) of this subsection.

(b)iiAppropriations transferred under Subdivision (4), Subsection (a), of this section are transferred for the remainder of that state fiscal biennium.

(c)iiThe Texas Commission on Environmental Quality, as of the date of the transfer prescribed by Subsection (a) of this section, has full responsibility for the administration and enforcement of laws related to licensing or regulation of radioactive substances recovery, storage, processing, and disposal under the jurisdiction of the commission as provided by Subsection (b), Section 401.011, Health and Safety Code, as amended by this Act, and licensing or regulation of long–term care of decommissioned sites for the disposal of by-product material. The Texas Commission on Environmental Quality shall carry out all related duties, responsibilities, functions, and activities as provided by law, including those assigned by any other Acts of the 80th Legislature, Regular Session, 2007.

(d)iiThe transfer of rights, powers, duties, obligations, functions, activities, property, and programs of the Health and Human Services Commission or the Department of State Health Services to the Texas Commission on Environmental Quality made by this Act does not affect or impair any act done or obligation, right, license, permit, requirement, or penalty accrued or existing under the former law; that law remains in effect for the purposes of any action concerning such an act done or obligation, right, license, permit, requirement, or penalty. The Texas Commission on Environmental Quality shall continue a proceeding of the Health and Human Services Commission or the Department of State Health Services that is related to a responsibility, duty, activity, function, or program transferred by this Act, including processing an application for a license or other authorization and including enforcing the requirements of Chapter 401, Health and Safety Code, or a rule adopted under that chapter. A rule of the Health and Human Services Commission or the Department of State Health Services related to a responsibility, duty, activity, function, or program transferred by this Act is enforceable as a rule of the Texas Commission on Environmental Quality until the Texas Commission on Environmental Quality adopts other rules.

(e)iiControl of and title to all property and material acquired by this state or an agency of this state under Section 401.267, Health and Safety Code, before the effective date of this Act shall be transferred to the Texas Commission on Environmental Quality on this state's behalf as soon as practicable. This subsection does not apply to property or material sold by the state under Subsection (b) of that section before the effective date of this Act.

(f)iiThe Texas Commission on Environmental Quality shall provide an opportunity for employees of the Health and Human Services Commission or the Department of State Health Services who have performed duties related to a right, power, duty, obligation, responsibility, function, activity, or program transferred by this Act to request a transfer to commission employment. In making employment decisions under this subsection, the Texas Commission on Environmental Quality shall:

4800 80th Legislature — Regular Session 68th Day


(1)iiensure that state and federal requirements are met by commission employees; and

(2)iiconsider the value of maintaining continuity in the personnel staffing relevant programs.

(g)iiThe Texas Commission on Environmental Quality, the Health and Human Services Commission, and the Department of State Health Services shall cooperate in preventing any delay that may be caused by or may occur in the transfer of property or personnel or a right, power, duty, obligation, responsibility, function, activity, or program made by this Act.

(h)iiTo expedite the transfers made by this Act of rights, powers, duties, obligations, functions, activities, property, and programs, and to prevent delays related to any of the rights, powers, duties, obligations, functions, activities, property, or programs, the Texas Commission on Environmental Quality may contract with any person to assist the commission. The commission may assess and collect additional fees from an applicant affected by performance under a contract under this subsection to recover the commission's contracting costs.

(i)iiThe transfers made by this Act do not affect any matter that is the subject of a court proceeding pending on the effective date of this Act.

(j)iiThe Texas Commission on Environmental Quality shall continue any applications review or processing and any hearings that concern a matter subject to transfer under Subsection (a) of this section that, on the date of the transfer, is being conducted by the Health and Human Services Commission or the Department of State Health Services or their successor agencies. The agencies shall cooperate and consult with each other to ensure that any delay necessitated by the transfer is minimized to the greatest extent possible. The Texas Commission on Environmental Quality shall utilize progress made on any technical review or environmental analysis conducted by the department prior to the effective date of this Act.

(k)iiAn application for a new license to dispose of by-product material that is filed with the Department of State Health Services on or before January 1, 2007, and that has not been referred to the State Office of Administrative Hearings by the department before the effective date of this Act shall be processed by the Texas Commission on Environmental Quality following the effective date of this Act as follows:

(1)iia license application subject to this subsection shall be governed only by the technical rules and regulations of the department that are effective on the effective date of this Act;

(2)iithe commission shall complete any technical review of a license application subject to this subsection and determine whether a draft license shall be issued on or before October 1, 2007. The commission shall utilize progress made on any technical review or environmental analysis conducted by the department before the effective date of this Act. In order to meet the deadline provided by this subdivision, the commission may contract with the department or other entities for completion of any portion of the technical review that has not been completed upon the effective date of this Act. The commission may assess and collect additional fees from the applicant to recover costs the commission incurs for technical review of a license application subject to this subsection;

Saturday, May 26, 2007 SENATE JOURNAL 4801


(3)iithe commission shall render a final decision on a license application subject to this subsection on or before December 31, 2008; and

(4)iia contested case hearing held on a license application subject to this subsection that was filed with the department on or before January 1, 2007, may not exceed one year in duration, measured from the date of referral by the commission of the application to the State Office of Administrative Hearings until the commission makes a final decision on the application. Discovery in such a hearing shall be limited to not more than 60 days in order to meet this limitation. Notice of hearing shall be provided to the applicant, the office of public interest counsel, the executive director of the commission, and the person who timely requested a contested case hearing by mail at least 10 days in advance of the hearing.

(l)iiThis subsection applies only to an applicant for a license subject to Subsection (k) of this section. Notwithstanding rules adopted under Subsection (f), Section 401.263, Health and Safety Code, as amended by this Act, and to the extent not prohibited under federal law, the applicant, at the applicant's own risk, may begin major construction related to the activities for which the license application was made at the time technical review of the application has been made and an environmental analysis is prepared under Section 401.263, Health and Safety Code. The Texas Commission on Environmental Quality may oversee and govern the construction authorized by this subsection in the same manner and to the same extent as if the construction were authorized by a license issued by the commission, and the construction is subject to relevant commission rules as if the construction were authorized by a license issued by the commission.

SECTIONi34.ii(a)iiThis Act does not impair, delay, or affect the priority established by law for processing and review of the application for a license to dispose of low-level radioactive waste that was filed with the Texas Commission on Environmental Quality before Januaryi1, 2007.

(b)iiThe Texas Commission on Environmental Quality shall give priority to the processing and review of the license application described by Subsection (a) of this section over all other applications that pertain to radioactive substances or radioactive waste pending before the commission except for those applications the executive director of the Texas Commission on Environmental Quality determines are necessarily of a higher priority to avert or address an emergency concerning the public health or safety.

(c)iiSubject to the priority given under Subsection (b) of this section to the application, the Texas Commission on Environmental Quality shall give priority to the review and processing of:

(1)iian application for the commercial disposal of by-product material;

(2)iian application for termination of a license to recover or process source material and dispose of associated by-product material generated in this state; and

(3)iia new application for a permit to recover or process source material and dispose of associated by-product material generated in this state.

SECTIONi35.iiNotwithstanding other law or any rule on the subject of timeliness of an applicant providing information pertaining to an application for a license from the Texas Commission on Environmental Quality, the applicant for a license shall assist the commission in meeting any deadlines imposed by Chapter 401,

4802 80th Legislature — Regular Session 68th Day


Health and Safety Code, by submitting to the commission any information the commission requires regarding the application in a prompt and timely manner. The deadlines imposed by this Act and by Chapter 401, Health and Safety Code, as amended by this Act, are based on the assumptions that the applicant timely submits a complete application and that all requirements are met.

SECTIONi36.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect on the 91st day after the last day of the legislative session.

The Conference Committee Report on SBi1604 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 228

Senator Harris submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi228 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

HARRIS EILAND
HINOJOSA BONNEN
WATSON DUTTON
WENTWORTH GONZALEZ TOUREILLES
WILLIAMS STRAMA
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to suits affecting the parent-child relationship, including proceedings for the establishment, modification, and enforcement of child support, parentage, and possession of and access to a child; providing a civil penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiChapter 101, Family Code, is amended by adding Section 101.0255 to read as follows:

Sec.i101.0255.iiRECORD. "Record" means information that is:

(1)iiinscribed on a tangible medium or stored in an electronic or other medium; and

Saturday, May 26, 2007 SENATE JOURNAL 4803


(2)iiretrievable in a perceivable form.

SECTIONi2.iiSubsection (d), Section 102.009, Family Code, is amended to read as follows:

(d)iiIf the petition requests the establishment, termination, modification, or enforcement of a support right assigned to the Title IV-D agency under Chapter 231 or the rescission of a voluntary acknowledgment of paternity under Chapter 160, notice shall be given to the Title IV-D agency in a manner provided by Rule 21a, Texas Rules of Civil Procedure.

SECTIONi3.iiSubsection (g), Section 105.006, Family Code, is amended to read as follows:

(g)iiThe Title IV-D agency shall promulgate and provide forms for a party to use in reporting to the court and[, when established, to] the state case registry under Chapter 234 the information required under this section.

SECTIONi4.iiSection 108.001, Family Code, is amended by amending Subsection (a) and adding Subsection (d) to read as follows:

(a)iiExcept as provided by this chapter, the clerk of the court shall transmit to the bureau of vital statistics a certified record of the order rendered in a suit, together with the name and all prior names, birth date, and place of birth of the child [prepared by the petitioner] on a form provided by the bureau. The form shall be completed by the petitioner and submitted to the clerk at the time the order is filed for record.

(d)iiIn a Title IV-D case, the Title IV-D agency may transmit the record and information specified by Subsection (a) to the bureau of vital statistics, with a copy to the clerk of the court on request by the clerk. The record and information are not required to be certified if transmitted by the Title IV-D agency under this subsection.

SECTIONi5.iiSection 108.004, Family Code, is amended to read as follows:

Sec.i108.004.iiTRANSMITTAL OF FILES ON LOSS OF JURISDICTION. On the loss of jurisdiction of a court under Chapter 155, 159, or 262, the clerk of the court shall transmit to the central registry of the bureau of vital statistics a certified record, on a form provided by the bureau, stating that jurisdiction has been lost, the reason for the loss of jurisdiction, and the name and all previous names, date of birth, and place of birth of the child.

SECTIONi6.iiSubsection (b), Section 151.001, Family Code, is amended to read as follows:

(b)iiThe duty of a parent to support his or her child exists while the child is an unemancipated minor and continues as long as the child is fully enrolled in a [an accredited] secondary school in a program leading toward a high school diploma and complies with attendance requirements described by Section 154.002(a)(2) [until the end of the school year in which the child graduates].

SECTIONi7.iiSubchapter A, Chapter 153, Family Code, is amended by adding Section 153.015 to read as follows:

Sec.i153.015.iiELECTRONIC COMMUNICATION WITH CHILD BY CONSERVATOR. (a)iiIn this section, "electronic communication" means any communication facilitated by the use of any wired or wireless technology via the Internet or any other electronic media. The term includes communication facilitated by the use of a telephone, electronic mail, instant messaging, videoconferencing, or webcam.

4804 80th Legislature — Regular Session 68th Day


(b)iiIf a conservator of a child requests the court to order periods of electronic communication with the child under this section, the court may award the conservator reasonable periods of electronic communication with the child to supplement the conservator's periods of possession of the child. In determining whether to award electronic communication, the court shall consider:

(1)iiwhether electronic communication is in the best interest of the child;

(2)iiwhether equipment necessary to facilitate the electronic communication is reasonably available to all parties subject to the order; and

(3)iiany other factor the court considers appropriate.

(c)iiIf a court awards a conservator periods of electronic communication with a child under this section, each conservator subject to the court's order shall:

(1)iiprovide the other conservator with the e-mail address and other electronic communication access information of the child;

(2)iinotify the other conservator of any change in the e-mail address or other electronic communication access information not later than 24 hours after the date the change takes effect; and

(3)iiif necessary equipment is reasonably available, accommodate electronic communication with the child, with the same privacy, respect, and dignity accorded all other forms of access, at a reasonable time and for a reasonable duration subject to any limitation provided by the court in the court's order.

(d)iiThe court may not consider the availability of electronic communication as a factor in determining child support. The availability of electronic communication under this section is not intended as a substitute for physical possession of or access to the child where otherwise appropriate.

(e)iiIn a suit in which the court's order contains provisions related to a finding of family violence in the suit, including supervised visitation, the court may award periods of electronic communication under this section only if:

(1)iithe award and terms of the award are mutually agreed to by the parties; and

(2)iithe terms of the award:

(A)iiare printed in the court's order in boldfaced, capitalized type; and

(B)iiinclude any specific restrictions relating to family violence or supervised visitation, as applicable, required by other law to be included in a possession or access order.

SECTIONi8.iiSection 153.3161, Family Code, is amended to read as follows:

Sec.i153.3161.ii[LIMITED] POSSESSION DURING MILITARY DEPLOYMENT. (a)iiIn this section, "military deployment" means military duty ordered for a period of more than six months during which the person ordered to duty:

(1)iiis not provided the option of being accompanied by the person's child; and

(2)iiis serving in a location where access to the person's child is not reasonably possible.

Saturday, May 26, 2007 SENATE JOURNAL 4805


(b)iiIn addition to the general terms and conditions of possession required by Section 153.316, if a possessory conservator or a joint managing conservator of the child without the exclusive right to designate the primary residence of the child is currently a member of the armed forces of the state or the United States or is reasonably expected to join those forces, the court shall:

(1)iipermit that conservator to designate a person who may exercise [limited] possession of the child on behalf of that conservator during any period that the conservator is deployed under a military deployment [outside of the United States]; and

(2)iiif the conservator elects to designate a person under Subdivision (1), provide in the order for [limited] possession of the child by the designated person under those circumstances, subject to the court's determination that the [limited] possession is in the best interest of the child.

(c)i[(b)]iiIf the court determines that the [limited] possession is in the best interest of the child, the court shall provide in the order that during periods of military deployment:

(1)iithe designated person has the right to possession of the child for the periods and in the manner in which the deployed conservator would be entitled to exercise possession if not deployed [on the first weekend of each month beginning at 6 p.m. on Friday and ending at 6 p.m. on Sunday];

(2)ii[the other parent shall surrender the child to the designated person at the beginning of each period of possession at the other parent's residence;

[(3)iithe designated person shall return the child to the other parent's residence at the end of each period of possession;

[(4)]iithe child's other parent and the designated person are subject to the requirements of Section 153.316, with the designated person considered for purposes of that section to be the possessory conservator [Sections 153.316(5)-(9)];

(3)i[(5)]iithe designated person has the rights and duties of a nonparent possessory conservator under Section 153.376(a) during the period that the person has possession of the child; and

(4)i[(6)]iithe designated person is subject to any provision in a court order restricting or prohibiting access to the child by any specified individual.

(d)i[(c)]iiAfter the military deployment is concluded, and the deployed parent returns to that parent's usual residence, the designated person's right to [limited] possession under this section terminates and the rights of all affected parties are governed by the terms of any court order applicable when a parent is not deployed.

SECTIONi9.ii(a)iiSubsection (a), Section 154.006, Family Code, is amended to read as follows:

(a)iiUnless otherwise agreed in writing or expressly provided in the order or as provided by Subsection (b), the child support order terminates on:

(1)iithe marriage of the child;

(2)iithe removal of the child's disabilities for general purposes;

(3)iithe death of:

(A)iithe child; or

(B)iia parent ordered to pay child support; [or]

(4)iia finding by a court that the child:

4806 80th Legislature — Regular Session 68th Day


(A)iiis 18 years of age or older; and

(B)iihas failed to comply with the enrollment or attendance requirements described by Section 154.002(a); or

(5)iiif the child enlists in the armed forces of the United States, the date on which the child begins active service as defined by 10 U.S.C. Section 101.

(b)iiThe change in law made by this Act to Subsection (a), Section 154.006, Family Code, applies to an order for child support regardless of whether the order was rendered before, on, or after the effective date of this Act.

SECTIONi10.iiSection 154.127, Family Code, is amended to read as follows:

Sec.i154.127.iiPARTIAL TERMINATION OF SUPPORT OBLIGATION.i(a)iiA child support order for more than one child shall provide that, on the termination of support for a child, the level of support for the remaining child or children is in accordance with the child support guidelines.

(b)iiA child support order is in compliance with the requirement imposed by Subsection (a) if the order contains a provision that specifies:

(1)iithe events, including a child reaching the age of 18 years or otherwise having the disabilities of minority removed, that have the effect of terminating the obligor's obligation to pay child support for that child; and

(2)iithe reduced total amount that the obligor is required to pay each month after the occurrence of an event described by Subdivision (1).

SECTIONi11.ii(a)iiSection 154.131, Family Code, is amended by adding Subsection (f) to read as follows:

(f)iiNotwithstanding any other provision of this subtitle, the court retains jurisdiction to render an order for retroactive child support in a suit if a petition requesting retroactive child support is filed not later than the fourth anniversary of the date of the child's 18th birthday.

(b)iiThe change in law made by this Act by the enactment of Subsection (f), Section 154.131, Family Code, applies only to a petition in a suit affecting the parent-child relationship pending in a trial court on or filed on or after the effective date of this Act.

SECTIONi12.iiSubsections (a) and (b), Section 154.186, Family Code, are amended to read as follows:

(a)iiThe obligee, obligor, or a child support agency of this state or another state may send to the employer a copy of the order requiring an employee to provide health insurance coverage for a child or may include notice of the medical support order in an order or writ of withholding sent to the employer in accordance with Chapter 158.

(b)iiIn an appropriate Title IV-D case, the Title IV-D agency of this state or another state shall send to the employer the national medical support notice required under Part D, Title IV of the federal Social Security Act (42 U.S.C. Section 651 et seq.), as amended. The notice may be used in any other suit in which an obligor is ordered to provide health insurance coverage for a child.

SECTIONi13.iiSubsection (c), Section 155.301, Family Code, is amended to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4807


(c)iiExcept as otherwise provided by this subsection, if [If] a transfer of continuing, exclusive jurisdiction is sought under this section, the procedures for determining and effecting a transfer of proceedings provided by this chapter apply. If the parties submit to the court an agreed order for transfer, the court shall sign the order without the need for other pleadings.

SECTIONi14.iiSection 156.105, Family Code, is amended to read as follows:

Sec.i156.105.iiMODIFICATION OF ORDER BASED ON MILITARY DEPLOYMENT. (a)iiIn this section, "military deployment" means military duty ordered for a period of more than six months during which the person ordered to duty:

(1)iiis not provided the option of being accompanied by the person's child; and

(2)iiis serving in a location where access to the person's child is not reasonably possible.

(b)iiThe military deployment [outside this country] of a person who is a possessory conservator or a joint managing conservator without the exclusive right to designate the primary residence of the child is a material and substantial change of circumstances sufficient to justify a modification of an existing court order or portion of a decree that sets the terms and conditions for the possession of or access to a child.

(c)i[(b)]iiIf the court determines that modification is in the best interest of the child, the court may modify the order or decree to provide in a manner consistent with Section 153.3161 for [limited] possession of the child during the period of the military deployment by a person designated by the deployed conservator.

SECTIONi15.iiSubsection (b), Section 156.401, Family Code, is amended to read as follows:

(b)iiA support order may be modified with regard to the amount of support ordered only as to obligations accruing after the earlier of:

(1)iithe date of service of citation; or

(2)iian appearance in the suit to modify.

SECTIONi16.iiSection 156.409, Family Code, is amended by amending Subsection (a) and adding Subsections (a-1), (a-2), and (a-3) to read as follows:

(a)iiThe [If the sole managing conservator of a child or the joint managing conservator who has the exclusive right to determine the primary residence of the child has voluntarily relinquished the primary care and possession of the child to another person for at least six months, the] court shall, on the motion of a party or a [the other] person having physical possession of the child, modify an order providing for the support of the child to provide that the [other] person having physical possession of the child for at least six months shall have the right to receive and give receipt for payments of support for the child and to hold or disburse money for the benefit of the child if the sole managing conservator of the child or the joint managing conservator who has the exclusive right to determine the primary residence of the child has:

(1)iivoluntarily relinquished the primary care and possession of the child;

(2)iibeen incarcerated or sentenced to be incarcerated for at least 90 days; or

(3)iirelinquished the primary care and possession of the child in a proceeding under Title 3 or Chapter 262.

4808 80th Legislature — Regular Session 68th Day


(a-1)iiIf the court modifies a support order under this section, the court shall order the obligor to pay the person or entity having physical possession of the child any unpaid child support that is not subject to offset or reimbursement under Section 157.008 and that accrues after the date the sole or joint managing conservator:

(1)iirelinquishes possession and control of the child, whether voluntarily or in a proceeding under Title 3 or Chapter 262; or

(2)iiis incarcerated.

(a-2)iiThis section does not affect the ability of the court to render a temporary order for the payment of child support that is in the best interest of the child.

(a-3)iiAn order under this section that modifies a support order because of the incarceration of the sole or joint managing conservator of a child must provide that on the conservator's release from incarceration the conservator may file an affidavit with the court stating that the conservator has been released from incarceration, that there has not been a modification of the conservatorship of the child during the incarceration, and that the conservator has resumed physical possession of the child. A copy of the affidavit shall be delivered to the obligor and any other party, including the Title IV-D agency if appropriate. On receipt of the affidavit, the court on its own motion shall order the obligor to make support payments to the conservator.

SECTIONi17.iiSubsection (a), Section 157.005, Family Code, is amended to read as follows:

(a)iiThe court retains jurisdiction to render a contempt order for failure to comply with the child support order if the motion for enforcement is filed not later than the second anniversary of [sixth month after] the date:

(1)iithe child becomes an adult; or

(2)iion which the child support obligation terminates under the order or by operation of law.

SECTIONi18.iiSubsection (a), Section 157.065, Family Code, is amended to read as follows:

(a)iiIf a party has been ordered under Chapter 105 to provide the court and the state case registry with the party's current mailing address, notice of a hearing on a motion for enforcement may be served by mailing a copy of the notice to the respondent, together with a copy of the motion, by first class mail to the last mailing address of the respondent on file with the court and the registry.

SECTIONi19.iiSection 157.102, Family Code, is amended to read as follows:

Sec.i157.102.iiCAPIAS OR WARRANT; DUTY OF LAW ENFORCEMENT OFFICIALS. Law enforcement officials shall treat a [the] capias or arrest warrant ordered under this chapter in the same manner as an arrest warrant for a criminal offense and shall enter the capias or warrant in the computer records for outstanding warrants maintained by the local police, sheriff, and Department of Public Safety. The capias or warrant shall be forwarded to and disseminated by the Texas Crime Information Center and the National Crime Information Center.

SECTIONi20.iiSection 157.268, Family Code, is amended to read as follows:

Sec.i157.268.iiAPPLICATION OF CHILD SUPPORT PAYMENT. Child support collected shall be applied in the following order of priority:

(1)iicurrent child support;

(2)iinon-delinquent child support owed;

Saturday, May 26, 2007 SENATE JOURNAL 4809


(3)iiinterest on the principal amounts specified in Subdivisions (4) and (5);

(4)iithe principal amount of child support that has not been confirmed and reduced to money judgment;

(5)iithe principal amount of child support that has been confirmed and reduced to money judgment; and

(6)iithe amount of any ordered attorney's fees or costs, or Title IV-D service fees authorized under Section 231.103 for which the obligor is responsible.

SECTIONi21.iiSubsections (a) and (c), Section 157.105, Family Code, are amended to read as follows:

(a)iiIf the respondent is taken into custody and not released on bond, the respondent shall be brought before the court that issued the capias on or before the third [first] working day after the arrest. The court shall determine whether the respondent's appearance in court at a designated time and place can be assured by a method other than by posting the bond or security previously established.

(c)iiIf the court is not satisfied that the respondent's appearance in court can be assured and the respondent remains in custody, a hearing on the alleged contempt shall be held as soon as practicable, but not later than the seventh [fifth] day after the date that the respondent was taken into custody, unless the respondent and the respondent's attorney waive the accelerated hearing.

SECTIONi22.iiSection 157.212, Family Code, is amended to read as follows:

Sec.i157.212.iiTERM OF COMMUNITY SUPERVISION. The initial period of community supervision [period] may not exceed 10 years. The court may continue the community supervision beyond 10 years until the earlier of:

(1)iithe second anniversary of the date on which the community supervision first exceeded 10 years; or

(2)iithe date on which all child support, including arrearages and interest, has been paid.

SECTIONi23.iiSubsections (a) and (b), Section 157.216, Family Code, are amended to read as follows:

(a)iiThe court shall hold a hearing without a jury not later than [on or before] the third [first] working day after the date the respondent is arrested under Section 157.215. If the court is unavailable for a hearing on that date, the hearing shall be held not later than the third [first] working day after the date the court becomes available.

(b)iiThe hearing under this section may not be held later than the seventh [third] working day after the date the respondent is arrested.

SECTIONi24.iiSubsection (c), Section 157.263, Family Code, is amended to read as follows:

(c)iiIf the amount of arrearages confirmed by the court reflects a credit to the obligor for support arrearages collected from a federal tax refund under 42 U.S.C. Section 664, [as amended,] and, subsequently, the amount of that credit is reduced because the refund was adjusted because of an injured spouse claim by a jointly filing spouse, the tax return was amended, the return was audited by the Internal Revenue Service, or for another reasonipermitted by law [based on a joint return under which another person was entitled to a share of the refund under 42 U.S.C. Section 664, as amended], the court shall render a new cumulative judgment to include as arrearages an amount equal to the amount by which the credit was reduced.

4810 80th Legislature — Regular Session 68th Day


SECTIONi25.iiSubsection (b), Section 157.264, Family Code, is amended to read as follows:

(b)iiThe court shall [may] render an order requiring[:

[(1)iithat income be withheld from the disposable earnings of the obligor in an amount sufficient to discharge the judgment in not more than two years; or

[(2)iiif the obligor is not subject to income withholding,] that the obligor make periodic payments on the judgment, including by income withholding under Chapter 158 if the obligor is subject to income withholding [to the obligee in an amount sufficient to discharge the judgment within a reasonable time].

SECTIONi26.iiSection 157.269, Family Code, is amended to read as follows:

Sec.i157.269.iiRETENTION OF JURISDICTION. A court that renders an order providing for the payment of child support [arrearages] retains continuing jurisdiction to enforce the order, including by adjusting the amount of the periodic payments to be made by the obligor or the amount to be withheld from the obligor's disposable earnings, until all current support and medical support and child support arrearages, including interest and any applicable fees and costs, have been paid.

SECTIONi27.iiSection 157.313, Family Code, is amended by amending Subsections (a), (c), and (e) and adding Subsection (f) to read as follows:

(a)iiExcept as provided by Subsection (e), a child support lien notice must contain:

(1)iithe name and address of the person to whom the notice is being sent;

(2)iithe style, docket or cause number, and identity of the tribunal of this or another state having continuing jurisdiction of the child support action and, if the case is a Title IV-D case, the case number;

(3)iithe full name, address, and, if known, the birth date, driver's license number, social security number, and any aliases of the obligor;

(4)iithe full name and, if known, social security number of the obligee;

(5)iithe amount of the current or prospective child support obligation, the frequency with which current or prospective child support is ordered to be paid, and the amount of child support arrearages owed by the obligor and the date of the signing of the court order, administrative order, or writ that determined the arrearages or the date and manner in which the arrearages were determined;

(6)iithe rate of interest specified in the court order, administrative order, or writ or, in the absence of a specified interest rate, the rate provided for by law;

(7)iithe name and address of the person or agency asserting the lien;

(8)iithe motor vehicle identification number as shown on the obligor's title if the property is a motor vehicle;

(9)iia statement that the lien attaches to all nonexempt real and personal property of the obligor that is located or recorded in the state, including any property specifically identified in the notice and any property acquired after the date of filing or delivery of the notice;

(10)iia statement that any ordered child support not timely paid in the future constitutes a final judgment for the amount due and owing, including interest, and accrues up to an amount that may not exceed the lien amount; and

Saturday, May 26, 2007 SENATE JOURNAL 4811


(11)iia statement that the obligor is being provided a copy of the lien notice and that the obligor may dispute the arrearage amount by filing suit under Section 157.323.

(c)iiExcept as provided by Subsection (e), the [The] lien notice must be verified.

(e)iiA notice of a lien for child support under this section may be in the form authorized by federal law or regulation. The federal form of lien notice does not require verification when used by the Title IV-D agency.

(f)iiThe requirement under Subsections (a)(3) and (4) to provide a social security number, if known, does not apply to a lien notice for a lien on real property.

SECTIONi28.iiSubsection (a-1), Section 157.317, Family Code, is amended to read as follows:

(a-1)iiA lien attaches to all property owned or acquired on or after the date the lien notice or abstract of judgment is filed with the county clerk of the county in which the property is located, with the court clerk as to property or claims in litigation, or, as to property of the obligor in the possession or control of a third party, from the date the lien notice is delivered to [filed with] that party.

SECTIONi29.iiSubsection (a), Section 157.318, Family Code, is amended to read as follows:

(a)iiA lien is effective until all current support and child support arrearages, including interest, [and] any costs and reasonable attorney's fees, and any Title IV-D service fees authorized under Section 231.103 for which the obligor is responsible, have been paid or the lien is otherwise released as provided by this subchapter.

SECTIONi30.iiSection 157.324, Family Code, is amended to read as follows:

Sec.i157.324.iiLIABILITY FOR FAILURE TO COMPLY WITH ORDER OR LIEN. A person who knowingly disposes of property subject to a child support lien or[,] who, after a foreclosure hearing, fails to surrender on demand nonexempt personal property as directed by a court [or administrative order] under this subchapter[, or who fails to comply with a notice of levy under this subchapter] is liable to the claimant in an amount equal to the value of the property disposed of or not surrendered, not to exceed the amount of the child support arrearages for which the lien[, notice of levy,] or foreclosure judgment was issued.

SECTIONi31.iiSection 157.327, Family Code, is amended by amending Subsection (b) and adding Subsection (f) to read as follows:

(b)iiThe notice under this section must:

(1)iiidentify the amount of child support arrearages owing at the time the amount of arrearages was determined or, if the amount is less, the amount of arrearages owing at the time the notice is prepared and delivered to the financial institution; and

(2)iidirect the financial institution to pay to the claimant, not earlier than the 15th day or later than the 21st day after the date of delivery of the notice, an amount from the assets of the obligor or from funds due to the obligor that are held or controlled by the institution, not to exceed the amount of the child support arrearages identified in the notice, unless:

(A)iithe institution is notified by the claimant that the obligor has paid the arrearages or made arrangements satisfactory to the claimant for the payment of the arrearages;

4812 80th Legislature — Regular Session 68th Day


(B)iithe obligor or another person files a suit under Section 157.323 requesting a hearing by the court; or

(C)iiif the claimant is the Title IV-D agency, the obligor has requested an agency review under Section 157.328.

(f)iiA financial institution may deduct the fees and costs identified in Subsection (c) from the obligor's assets before paying the appropriate amount to the claimant.

SECTIONi32.iiSection 157.330, Family Code, is amended to read as follows:

Sec.i157.330.iiFAILURE TO COMPLY WITH NOTICE OF LEVY. (a)iiA person who possesses or has a right to property that is the subject of a notice of levy delivered to the person and who refuses to surrender the property or right to property to the claimant on demand is liable to the claimant in an amount equal to the value of the property or right to property not surrendered but that does not exceed the amount of the child support arrearages for which the notice of levy has been filed.

(b)iiA claimant may recover costs and reasonable attorney's fees incurred in an action under this section.

SECTIONi33.iiSubchapter C, Chapter 158, Family Code, is amended by adding Section 158.214 to read as follows:

Sec.i158.214.iiWITHHOLDING FROM SEVERANCE PAY. (a)iiIn this section, "severance pay" means income paid on termination of employment in addition to the employee's usual earnings from the employer at the time of termination.

(b)iiAn employer receiving an order or writ of withholding under this chapter shall withhold from any severance pay owed an obligor an amount equal to the amount the employer would have withheld under the order or writ if the severance pay had been paid as the obligor's usual earnings as a current employee.

(c)iiThe total amount that may be withheld under this section is subject to the maximum amount allowed to be withheld under Section 158.009.

SECTIONi34.iiSubchapter C, Chapter 158, Family Code, is amended by adding Section 158.215 to read as follows:

Sec.i158.215.iiWITHHOLDING FROM LUMP-SUM PAYMENTS. (a)iiIn this section, "lump-sum payment" means income in the form of a bonus or commission or an amount paid in lieu of vacation or other leave time. The term does not include an employee's usual earnings or an amount paid as severance pay on termination of employment.

(b)iiThis section applies only to an employer who receives an administrative writ of withholding in a Title IV-D case that requires that an obligor's income be withheld for child support arrearages.

(c)iiAn employer to whom this section applies may not make a lump-sum payment to the obligor in the amount of $500 or more without first notifying the Title IV-D agency that issued the writ to determine whether all or a portion of the payment should be applied to the child support arrearages.

(d)iiAfter notifying the Title IV-D agency in compliance with Subsection (c), the employer may not make the lump-sum payment before the earlier of:

(1)iithe 10th day after the date on which the employer notified the Title IV-D agency; or

(2)iithe date on which the employer receives authorization from the Title IV-D agency to make the payment.

Saturday, May 26, 2007 SENATE JOURNAL 4813


(e)iiIf the employer receives a timely authorization from the Title IV-D agency under Subsection (d)(2), the employer may make the payment only in accordance with the terms of that authorization.

SECTIONi35.iiSubsection (a), Section 158.502, Family Code, is amended to read as follows:

(a)iiAn administrative writ of withholding under this subchapter may be issued by the Title IV-D agency at any time until all current support, including medical support, and child support arrearages, and Title IV-D service fees authorized under Section 231.103 for which the obligor is responsible, have been paid. The writ issued under this subsection may be based on an obligation in more than one support order.

SECTIONi36.iiSection 158.506, Family Code, is amended by amending Subsection (c) and adding Subsection (d) to read as follows:

(c)iiIf a review under this section fails to resolve any issue in dispute, the obligor [is entitled to the remedies provided by Section 158.317 for cases in which a notice of an application for judicial writ of withholding was not received. The obligor] may file a motion with the court to withdraw the administrative writ of withholding and request a hearing with the court not later than the 30th day after receiving notice of the agency's determination. Income withholding may not be interrupted pending a hearing by the court.

(d)iiIf an administrative writ of withholding issued under this subchapter is based on an order of a tribunal of another state that has not been registered under Chapter 159, the obligor may file a motion with an appropriate court in accordance with Subsection (c).

SECTIONi37.iiSection 158.507, Family Code, is amended to read as follows:

Sec.i158.507.iiADMINISTRATIVE WRIT TERMINATING WITHHOLDING. An administrative writ to terminate withholding may be issued and delivered to an employer by the Title IV-D agency when all current support, including medical support, and child support arrearages, and Title IV-D service fees authorized under Section 231.103 for which the obligor is responsible, have been paid.

SECTIONi38.iiSubdivision (23), Section 159.102, Family Code, is amended to read as follows:

(23)ii"Support order" means a judgment, decree, [or] order, or directive, whether temporary, final, or subject to modification, issued by a tribunal for the benefit of a child, a spouse, or a former spouse that provides for monetary support, health care, arrearages, or reimbursement and may include related costs and fees, interest, income withholding, attorney's fees, and other relief.

SECTIONi39.iiSubdivision (6), Section 160.102, Family Code, is amended to read as follows:

(6)ii"Donor" means an individual who provides [produces] eggs or sperm to a licensed physician to be used for assisted reproduction, regardless of whether the eggs or sperm are provided [production is] for consideration. The term does not include:

(A)iia husband who provides sperm or a wife who provides eggs to be used for assisted reproduction by the wife; [or]

(B)iia woman who gives birth to a child by means of assisted reproduction; or

4814 80th Legislature — Regular Session 68th Day


(C)iian unmarried man who, with the intent to be the father of the resulting child, provides sperm to be used for assisted reproduction by an unmarried woman, as provided by Section 160.7031.

SECTIONi40.iiSubchapter H, Chapter 160, Family Code, is amended by adding Section 160.7031 to read as follows:

Sec.i160.7031.iiUNMARRIED MAN'S PATERNITY OF CHILD OF ASSISTED REPRODUCTION. (a)iiIf an unmarried man, with the intent to be the father of a resulting child, provides sperm to a licensed physician and consents to the use of that sperm for assisted reproduction by an unmarried woman, he is the father of a resulting child.

(b)iiConsent by an unmarried man who intends to be the father of a resulting child in accordance with this section must be in a record signed by the man and the unmarried woman and kept by a licensed physician.

SECTIONi41.iiSubsection (a), Section 160.704, Family Code, is amended to read as follows:

(a)iiConsent by a married woman to assisted reproduction must be in a record signed by the woman and her husband and kept by a licensed physician. This requirement does not apply to the donation of eggs by a married woman for assisted reproduction by another woman.

SECTIONi42.iiSection 160.706, Family Code, is amended to read as follows:

Sec.i160.706.iiEFFECT OF DISSOLUTION OF MARRIAGE. (a)iiIf a marriage is dissolved before the placement of eggs, sperm, or embryos, the former spouse is not a parent of the resulting child unless the former spouse consented in a record kept by a licensed physician that if assisted reproduction were to occur after a divorce the former spouse would be a parent of the child.

(b)iiThe consent of a former spouse to assisted reproduction may be withdrawn by that individual in a record kept by a licensed physician at any time before the placement of eggs, sperm, or embryos.

SECTIONi43.iiSection 160.707, Family Code, is amended to read as follows:

Sec.i160.707.iiPARENTAL STATUS OF DECEASED SPOUSE. If a spouse dies before the placement of eggs, sperm, or embryos, the deceased spouse is not a parent of the resulting child unless the deceased spouse consented in a record kept by a licensed physician that if assisted reproduction were to occur after death the deceased spouse would be a parent of the child.

SECTIONi44.iiSection 161.206, Family Code, is amended by adding Subsection (d) to read as follows:

(d)iiAn order rendered under this section must include a finding that:

(1)iia request for identification of a court of continuing, exclusive jurisdiction has been made as required by Section 155.101; and

(2)iiall parties entitled to notice, including the Title IV-D agency, have been notified.

SECTIONi45.iiSubsection (b), Section 231.006, Family Code, is amended to read as follows:

(b)iiA child support obligor or business entity ineligible to receive payments under Subsection (a) [or a child support obligor ineligible to receive payments under Subsection (a-1)] remains ineligible until:

Saturday, May 26, 2007 SENATE JOURNAL 4815


(1)iiall arrearages have been paid;

(2)iithe obligor is in compliance with a written repayment agreement or court order as to any existing delinquency; or

(3)iithe court of continuing jurisdiction over the child support order has granted the obligor an exemption from Subsection (a) as part of a court-supervised effort to improve earnings and child support payments.

SECTIONi46.iiThe heading to Section 231.012, Family Code, is amended to read as follows:

Sec.i231.012.iiCHILD SUPPORT [COUNTY ADVISORY] WORK GROUP.

SECTIONi47.iiSubsections (a), (b), and (c), Section 231.012, Family Code, are amended to read as follows:

(a)iiThe director of the Title IV-D agency may convene [shall establish] a [county advisory] work group representing public and private entities with an interest in child support enforcement in this state to work with [assist] the director [Title IV-D agency] in developing strategies to improve [and changing] child support enforcement in this state [programs that affect counties. The work group shall consist of at least one of each of the following:

[(1)iicounty judge;

[(2)iicounty commissioner;

[(3)iidistrict clerk;

[(4)iidomestic relations officer;

[(5)iiassociate judge for Title IV-D cases; and

[(6)iidistrict court judge].

(b)iiThe director of the Title IV-D agency shall appoint the members of the work group after consulting with appropriate public and private entities [the relevant professional or trade associations of the professions that are represented on the work group. The director of the Title IV-D agency shall determine the number of members of the work group and shall designate the presiding officer of the group].

(c)iiThe work group shall meet as convened by the director of the Title IV-D agency and consult with[:

[(1)iiadvise] the director on matters relating to [of the Title IV-D agency of the impact on counties that a proposed] child support enforcement in this state, including the delivery of Title IV-D services [program or a change in a program may have;

[(2)iiestablish a state-county child support improvement plan;

[(3)iiadvise the Title IV-D agency on the operation of the state disbursement unit;

[(4)iiplan for monetary incentives for county partnership programs;

[(5)iiexpand the number of agreements with counties for enforcement services; and

[(6)iiwork with relevant statewide associations on a model partnership agreement].

SECTIONi48.iiSection 231.103, Family Code, is amended by amending Subsection (f) and adding Subsection (g-1) to read as follows:

4816 80th Legislature — Regular Session 68th Day


(f)iiThe state disbursement unit established and operated by the Title IV-D agency under Chapter 234 may collect a monthly service fee of $3 in each case in which [deducted from] support payments are processed through the unit [in a case for which the Title IV-D agency is not providing services].

(g-1)iiA fee authorized under this section for providing child support enforcement services is part of the child support obligation if the obligor is responsible for the fee, and may be enforced against the obligor through any method available for the enforcement of child support, including contempt.

SECTIONi49.iiSection 231.202, Family Code, is amended to read as follows:

Sec.i231.202.iiAUTHORIZED COSTS AND FEES IN TITLE IV-D CASES. In a Title IV-D case filed under this title, including a case filed under Chapter 159, the Title IV-D agency shall pay:

(1)iifiling fees and fees for issuance and service of process as provided by Chapter 110 of this code and by Sections 51.317, 51.318(b)(2), and 51.319(2), Government Code;

(2)iifees for transfer as provided by Chapter 110;

(3)iifees for the issuance and delivery of orders and writs of income withholding in the amounts provided by Chapter 110;

(4)iithe fee that sheriffs and constables are authorized to charge for serving process under Section 118.131, Local Government Code, for each item of process to each individual on whom service is required, including service by certified or registered mail, to be paid to a sheriff, constable, or clerk whenever service of process is required; [and]

(5)iithe fee for filing an administrative writ of withholding under Section 158.503(d); and

(6)iithe fee for issuance of a subpoena as provided by Section 51.318(b)(1), Government Code.

SECTIONi50.iiSubdivisions (1), (2), and (3), Section 232.001, Family Code, are amended to read as follows:

(1)ii"License" means a license, certificate, registration, permit, or other authorization that:

(A)iiis issued by a licensing authority;

(B)iiis subject before expiration to renewal, suspension, revocation, forfeiture, or termination by a [the issuing] licensing authority; and

(C)iia person must obtain to:

(i)iipractice or engage in a particular business, occupation, or profession;

(ii)iioperate a motor vehicle on a public highway in this state; or

(iii)iiengage in any other regulated activity, including hunting, fishing, or other recreational activity for which a license or permit is required.

(2)ii"Licensing authority" means a department, commission, board, office, or other agency of the state or a political subdivision of the state that issues or renews a license or that otherwise has authority to suspend or refuse to renew a license.

(3)ii"Order suspending license" means an order issued by the Title IV-D agency or a court directing a licensing authority to suspend or refuse to renew a license.

Saturday, May 26, 2007 SENATE JOURNAL 4817


SECTIONi51.iiSection 232.002, Family Code, is amended to read as follows:

Sec.i232.002.iiLICENSING AUTHORITIES SUBJECT TO CHAPTER. Unless otherwise restricted or exempted, all [The following are] licensing authorities are subject to this chapter[:

[(1)iiDepartment of Agriculture;

[(2)iiTexas Alcoholic Beverage Commission;

[(3)iiTexas Appraiser Licensing and Certification Board;

[(4)iiTexas Board of Architectural Examiners;

[(5)iiTexas Board of Chiropractic Examiners;

[(6)iiComptroller of Public Accounts;

[(7)iiCourt Reporters Certification Board;

[(8)iiState Board of Dental Examiners;

[(9)iiTexas State Board of Examiners of Dietitians;

[(10)iiTexas Funeral Service Commission;

[(11)iiDepartment of State Health Services;

[(12)iiDepartment of Aging and Disability Services;

[(13)iiTexas Board of Professional Land Surveying;

[(14)iiTexas Department of Licensing and Regulation;

[(15)iiTexas State Board of Examiners of Marriage and Family Therapists;

[(16)iiTexas State Board of Medical Examiners;

[(17)iiMidwifery Board;

[(18)iiTexas Commission on Environmental Quality;

[(19)iiBoard of Nurse Examiners;

[(20)iiTexas Board of Occupational Therapy Examiners;

[(21)iiTexas Optometry Board;

[(22)iiParks and Wildlife Department;

[(23)iiTexas State Board of Examiners of Perfusionists;

[(24)iiTexas State Board of Pharmacy;

[(25)iiTexas Board of Physical Therapy Examiners;

[(26)iiTexas State Board of Plumbing Examiners;

[(27)iiTexas State Board of Podiatric Medical Examiners;

[(28)iiPolygraph Examiners Board;

[(29)iiTexas Private Security Board;

[(30)iiTexas State Board of Examiners of Professional Counselors;

[(31)iiTexas Board of Professional Engineers;

[(32)iiDepartment of Family and Protective Services;

[(33)iiTexas State Board of Examiners of Psychologists;

[(34)iiTexas State Board of Public Accountancy;

[(35)iiDepartment of Public Safety of the State of Texas;

[(36)iiPublic Utility Commission of Texas;

[(37)iiRailroad Commission of Texas;

[(38)iiTexas Real Estate Commission;

[(39)iiState Bar of Texas;

[(40)iiTexas State Board of Social Worker Examiners;

[(41)iiState Board of Examiners for Speech-Language Pathology and Audiology;

4818 80th Legislature — Regular Session 68th Day


[(42)iiTexas Structural Pest Control Board;

[(43)iiBoard of Tax Professional Examiners;

[(44)iiSecretary of State;

[(45)iiSupreme Court of Texas;

[(46)iiTexas Transportation Commission;

[(47)iiState Board of Veterinary Medical Examiners;

[(48)iiTexas Ethics Commission;

[(49)iiAdvisory Board of Athletic Trainers;

[(50)iiState Committee of Examiners in the Fitting and Dispensing of Hearing Instruments;

[(51)iiTexas Board of Licensure for Professional Medical Physicists;

[(52)iiTexas Department of Insurance;

[(53)iiTexas Board of Orthotics and Prosthetics;

[(54)iisavings and loan commissioner;

[(55)iiTexas Juvenile Probation Commission; and

[(56)iiTexas Lottery Commission under Chapter 466, Government Code].

SECTIONi52.iiChapter 232, Family Code, is amended by adding Section 232.0022 to read as follows:

Sec.i232.0022.iiSUSPENSION OR NONRENEWAL OF MOTOR VEHICLE REGISTRATION. (a)iiThe Texas Department of Transportation is the appropriate licensing authority for suspension or nonrenewal of a motor vehicle registration under this chapter.

(b)iiThe suspension or nonrenewal of a motor vehicle registration under this chapter does not:

(1)iiencumber the title to the motor vehicle or otherwise affect the transfer of the title to the vehicle; or

(2)iiaffect the sale, purchase, or registration of the motor vehicle by a person who holds a general distinguishing number issued under Chapter 503, Transportation Code.

SECTIONi53.iiSubsection (a), Section 232.004, Family Code, is amended to read as follows:

(a)iiA child support agency or obligee may file a petition to suspend, as provided by this chapter, a license of an obligor who has an arrearage equal to or greater than the total support due for three months [90 days] under a support order.

SECTIONi54.iiSubsections (b) and (c), Section 232.006, Family Code, are amended to read as follows:

(b)iiNotice under this section may be served:

(1)iiif the party has been ordered under Chapter 105 to provide the court and registry with the party's current mailing address, by mailing a copy of the notice to the respondent, together with a copy of the petition, by first class mail to the last mailing address of the respondent on file with the court and the state case registry; or

(2)iias in civil cases generally.

(c)iiThe notice must contain the following prominently displayed statement in boldfaced type, capital letters, or underlined:

Saturday, May 26, 2007 SENATE JOURNAL 4819


"AN ACTION TO SUSPEND ONE OR MORE LICENSES ISSUED TO YOU HAS BEEN FILED AS PROVIDED BY CHAPTER 232, TEXAS FAMILY CODE. YOU MAY EMPLOY AN ATTORNEY TO REPRESENT YOU IN THIS ACTION. IF YOU OR YOUR ATTORNEY DO NOT REQUEST A HEARING BEFORE THE 21ST DAY AFTER THE DATE OF SERVICE OF THIS NOTICE, AN ORDER SUSPENDING YOUR [OF] LICENSE [SUSPENSION] MAY BE RENDERED."

SECTIONi55.iiChapter 232, Family Code, is amended by adding Section 232.0135 to read as follows:

Sec.i232.0135.iiDENIAL OF LICENSE RENEWAL. (a)iiA child support agency, as defined by Section 101.004, may provide notice to a licensing authority concerning an obligor who has failed to pay child support for six months or more that requests the authority to refuse to accept an application for renewal of the license of the obligor.

(b)iiA licensing authority that receives the information described by Subsection (a) shall refuse to accept an application for renewal of the license of the obligor until the authority is notified by the child support agency that the obligor has:

(1)iipaid all child support arrearages;

(2)iiestablished with the agency a satisfactory repayment schedule or is in compliance with a court order for payment of the arrearages;

(3)iibeen granted an exemption from this subsection as part of a court-supervised plan to improve the obligor's earnings and child support payments; or

(4)iisuccessfully contested the denial of renewal of license under Subsection (d).

(c)iiOn providing a licensing authority with the notice described by Subsection (a), the child support agency shall send a copy to the obligor by first class mail and inform the obligor of the steps the obligor must take to permit the authority to accept the obligor's application for license renewal.

(d)iiAn obligor receiving notice under Subsection (c) may request a review by the child support agency to resolve any issue in dispute regarding the identity of the obligor or the existence or amount of child support arrearages. The agency shall promptly provide an opportunity for a review, either by telephone or in person, as appropriate to the circumstances. After the review, if appropriate, the agency may notify the licensing authority that it may accept the obligor's application for renewal of license. If the agency and the obligor fail to resolve any issue in dispute, the obligor, not later than the 30th day after the date of receiving notice of the agency's determination from the review, may file a motion with the court to direct the agency to withdraw the notice under Subsection (a) and request a hearing on the motion. The obligor's application for license renewal may not be accepted by the licensing authority until the court rules on the motion. If, after a review by the agency or a hearing by the court, the agency withdraws the notice under Subsection (a), the agency shall reimburse the obligor the amount of any fee charged the obligor under Section 232.014.

4820 80th Legislature — Regular Session 68th Day


(e)iiIf an obligor enters into a repayment agreement with the child support agency under this section, the agency may incorporate the agreement in an order to be filed with and confirmed by the court in the manner provided for agreed orders under Chapter 233.

(f)iiIn this section, "licensing authority" does not include the State Securities Board.

SECTIONi56.iiSection 232.014, Family Code, is amended to read as follows:

Sec.i232.014.iiFEE BY LICENSING AUTHORITY. (a)iiA licensing authority may charge a fee to an individual who is the subject of an order suspending license or of an action of a child support agency under Section 232.0135 to deny renewal of license in an amount sufficient to recover the administrative costs incurred by the authority under this chapter.

(b)iiA fee collected by the Texas Department of Transportation or the Department of Public Safety shall be deposited to the credit of the state highway fund.

SECTIONi57.iiSection 233.019, Family Code, is amended by adding Subsection (d) to read as follows:

(d)iiA child support order issued by a tribunal of another state and filed with an agreed review order as an exhibit to the agreed review order shall be treated as a confirmed order without the necessity of registration under Subchapter G, Chapter 159.

SECTIONi58.iiSubsection (c), Section 234.001, Family Code, is amended to read as follows:

(c)iiThe state disbursement unit shall:

(1)iireceive, maintain, and furnish records of child support payments in Title IV-D cases and other cases as authorized by law;

(2)iiforward child support payments as authorized by law;

(3)iimaintain records of child support payments [payment records] made through the state disbursement unit; and

(4)iimake available to a local registry each day in a manner determined by the Title IV-D agency [with the assistance of the work group established under Section 234.003] the following information:

(A)iithe cause number of the suit under which withholding is required;

(B)iithe payor's name and social security number;

(C)iithe payee's name and, if available, social security number;

(D)iithe date the disbursement unit received the payment;

(E)iithe amount of the payment; and

(F)iithe instrument identification information.

SECTIONi59.iiSection 234.006, Family Code, is amended to read as follows:

Sec.i234.006.iiRULEMAKING [EFFECTIVE DATE AND PROCEDURES]. The Title IV-D agency[, in cooperation with the work group established under Section 234.003,] may adopt rules in compliance with federal law for the operation of the state case registry and the state disbursement unit.

SECTIONi60.iiSubsection (a), Section 234.008, Family Code, is amended to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4821


(a)iiNot [Except as provided by Subsection (c) or (d), not] later than the second business day after the date the state disbursement unit receives a child support payment, the state disbursement unit shall distribute the payment to the Title IV-D agency or the obligee.

SECTIONi61.iiSubchapter A, Chapter 234, Family Code, is amended by adding Section 234.012 to read as follows:

Sec.i234.012.iiRELEASE OF INFORMATION FROM STATE CASE REGISTRY. Unless prohibited by a court in accordance with Section 105.006(c), the state case registry shall, on request and to the extent permitted by federal law, provide the information required under Sections 105.006 and 105.008 in any case included in the registry under Section 234.001(b) to:

(1)iiany party to the proceeding;

(2)iian amicus attorney;

(3)iian attorney ad litem;

(4)iia friend of the court;

(5)iia guardian ad litem;

(6)iia domestic relations office;

(7)iia prosecuting attorney or juvenile court acting in a proceeding under Title 3; or

(8)iia governmental entity or court acting in a proceeding under Chapter 262.

SECTIONi62.iiSubchapter B, Chapter 234, Family Code, is amended by adding Section 234.105 to read as follows:

Sec.i234.105.iiCIVIL PENALTY. (a)iiIn addition to any other remedy provided by law, an employer who knowingly violates a procedure adopted under Section 234.104 for reporting employee information may be liable for a civil penalty as permitted by Section 453A(d) of the federal Social Security Act (42 U.S.C. Section 653a).

(b)iiThe amount of the civil penalty may not exceed:

(1)ii$25 for each occurrence in which an employer fails to report an employee; or

(2)ii$500 for each occurrence in which the conduct described by Subdivision (1) is the result of a conspiracy between the employer and an employee to not supply a required report or to submit a false or incomplete report.

(c)iiThe attorney general may sue to collect the civil penalty. A penalty collected under this section shall be deposited in a special fund in the state treasury.

SECTIONi63.iiSubsections (a) and (d), Section 207.093, Labor Code, are amended to read as follows:

(a)iiThe commission shall withhold from the benefits payable to an individual that owes a child support obligation an amount equal to:

(1)iiany amount required to be withheld under legal process properly served on the commission;

(2)iiif Subdivision (1) does not apply, the amount determined under an agreement submitted to the commission under Section 454(19)(B)(i) [454(20)(B)(i)] of the Social Security Act (42 U.S.C. Section 654) by the state or local child support enforcement agency; or

4822 80th Legislature — Regular Session 68th Day


(3)iiif neither Subdivision (1) or (2) applies, the amount the individual specifies to the commission to be withheld.

(d)iiIn this section, "legal process" has the meaning assigned by Section 459(i)(5) [462(e)] of the Social Security Act (42 U.S.C. Section 659 [662]).

SECTIONi64.iiSubdivision (9), Section 501.002, Transportation Code, is amended to read as follows:

(9)ii"Lien" means:

(A)iia lien provided for by the constitution or statute in a motor vehicle; [or]

(B)iia security interest, as defined by Section 1.201, Business & Commerce Code, in a motor vehicle, other than an absolute title, created by any written security agreement, as defined by Section 9.102, Business & Commerce Code, including a lease, conditional sales contract, deed of trust, chattel mortgage, trust receipt, or reservation of title; or

(C)iia child support lien under Chapter 157, Family Code.

SECTIONi65.iiThe following provisions of the Family Code are repealed:

(1)iiSubsection (a-1), Section 231.006;

(2)iiSection 231.011;

(3)iiSubsection (d), Section 231.103;

(4)iiSection 231.310;

(5)iiSubsections (c), (d), and (e), Section 234.008; and

(6)iiChapter 235.

SECTIONi66.ii(a)iiThe change in law made by this Act relating to a court order establishing paternity or the obligation to pay child support applies only to a suit affecting the parent-child relationship filed on or after the effective date of this Act. A suit affecting the parent-child relationship filed before the effective date of this Act is governed by the law in effect on the date the suit was filed, and the former law is continued in effect for that purpose.

(b)iiThe change in law made by this Act relating to the modification or enforcement of a child support order rendered before the effective date of this Act applies only to a proceeding for modification or enforcement that is commenced on or after the effective date of this Act. A proceeding for modification or enforcement that is commenced before the effective date of this Act is governed by the law in effect on the date the proceeding was commenced, and the former law is continued in effect for that purpose.

(c)iiThe change in law made by this Act by the enactment of Section 234.105, Family Code, applies only to a violation that occurs on or after the effective date of this Act. A violation that occurs before that date is governed by the law in effect on the date the violation occurred, and the former law is continued in effect for that purpose.

SECTIONi67.ii(a)iiSubsection (f), Section 157.327, Family Code, as added by this Act, applies only to a financial institution that receives a notice of levy under that section on or after the effective date of this Act. A financial institution that receives a notice of levy under that section before the effective date of this Act is governed by the law in effect on the date the notice of levy is received, and the former law is continued in effect for that purpose.

Saturday, May 26, 2007 SENATE JOURNAL 4823


(b)iiThe changes in law made by this Act to Section 158.506, Family Code, apply only to an administrative writ of withholding issued on or after the effective date of this Act. An administrative writ of withholding issued before the effective date of this Act is governed by the law in effect at the time the administrative writ is issued, and the former law is continued in effect for that purpose.

(c)iiThe changes in law made by this Act to Section 231.103, Family Code, apply only to fees that are incurred on or after the date that the rules adopted in accordance with that section take effect.

SECTIONi68.iiSection 153.3161, Family Code, as amended by this Act, applies only to a suit affecting the parent-child relationship pending in a trial court on or filed on or after the effective date of this Act.

SECTIONi69.iiSection 156.105, Family Code, as amended by this Act, applies only to an action to modify an order in a suit affecting the parent-child relationship pending in a trial court on or filed on or after the effective date of this Act.

SECTIONi70.iiThe change in law made by this Act to Chapter 160, Family Code, applies to a motion or other request for relief made in a parentage or paternity proceeding that is commenced on or after the effective date of this Act. A motion or other request for relief made in a parentage or paternity proceeding commenced before the effective date of this Act is governed by the law in effect at the time the proceeding was commenced, and the former law is continued in effect for that purpose.

SECTIONi71.iiIn the event another Act of the 80th Legislature, Regular Session, 2007, includes a provision adopting Section 153.015, Family Code, relating to electronic communications between a parent and a child, and that provision is not identical to Section 153.015, Family Code, as provided in this Act, the provision in this Act shall prevail and any such provision in any other Act that is not identical to the provision in this Act shall not become effective.

SECTIONi72.iiThis Act takes effect September 1, 2007.

The Conference Committee Report on SBi228 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1168

Senator Shapleigh submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi1168 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

4824 80th Legislature — Regular Session 68th Day


SHAPLEIGH MENENDEZ
DUNCAN KOLKHORST
NELSON J. DAVIS
WILLIAMS PICKETT
VEASEY
On the part of the Senate On the part of the House

The Conference Committee Report on HBi1168 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 9

Senator Shapiro submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi9 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

SHAPIRO BRANCH
HINOJOSA MADDEN
JANEK EISSLER
OGDEN MORRISON
VANiDEiPUTTE
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to the disclosure or dissemination of criminal history record information, child abuse investigation reports, and school district audit working papers for certain purposes, including the certification and employment of educators and other public school employees who engage in certain misconduct.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubchapter B, Chapter 8, Education Code, is amended by adding Section 8.057 to read as follows:

Sec.i8.057.iiASSISTANCE WITH CRIMINAL HISTORY RECORD INFORMATION. The agency may require a regional education service center to assist in collecting information needed for a criminal history record information review under Subchapter C, Chapter 22.

SECTIONi2.iiSubchapter D, Chapter 12, Education Code, is amended by adding Section 12.1059 to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4825


Sec.i12.1059.iiAGENCY APPROVAL REQUIRED FOR CERTAIN EMPLOYEES. A person may not be employed by or serve as a teacher, librarian, educational aide, administrator, or counselor for an open-enrollment charter school unless the person has been approved by the agency following a review of the person's national criminal history record information as provided by Section 22.0832.

SECTIONi3.iiSubchapter A, Chapter 21, Education Code, is amended by adding Section 21.007 to read as follows:

Sec.i21.007.iiNOTICE ON CERTIFICATION RECORD OF ALLEGED MISCONDUCT. (a)iiIn this section, "board" means the State Board for Educator Certification.

(b)iiThe board shall adopt a procedure for placing a notice of alleged misconduct on an educator's public certification records. The procedure adopted by the board must provide for immediate placement of a notice of alleged misconduct on an educator's public certification records if the alleged misconduct presents a risk to the health, safety, or welfare of a student or minor as determined by the board.

(c)iiThe board must notify an educator in writing when placing a notice of an alleged incident of misconduct on the public certification records of the educator.

(d)iiThe board must provide an opportunity for an educator to show cause why the notice should not be placed on the educator's public certification records. The board shall propose rules establishing the length of time that a notice may remain on the educator's public certification records before the board must:

(1)iiinitiate a proceeding to impose a sanction on the educator on the basis of the alleged misconduct; or

(2)iiremove the notice from the educator's public certification records.

(e)iiIf it is determined that the educator has not engaged in the alleged incident of misconduct, the board shall immediately remove the notice from the educator's public certification records.

(f)iiThe board shall propose rules necessary to administer this section.

SECTIONi4.iiSection 21.048, Education Code, is amended by adding Subsection (c-1) to read as follows:

(c-1)iiThe results of an examination administered under this section are confidential and are not subject to disclosure under Chapter 552, Government Code, unless:

(1)iithe disclosure is regarding notification to a parent of the assignment of an uncertified teacher to a classroom as required by Section 21.057; or

(2)iithe educator has failed the examination more than five times.

SECTIONi5.iiSubchapter B, Chapter 21, Education Code, is amended by adding Section 21.060 to read as follows:

Sec.i21.060.iiELIGIBILITY OF PERSONS CONVICTED OF CERTAIN OFFENSES. The board may suspend or revoke the certificate or permit held by a person under this subchapter, impose other sanctions against the person, or refuse to issue a certificate or permit to a person under this subchapter if the person has been convicted of a felony or misdemeanor offense relating to the duties and responsibilities of the education profession, including:

(1)iian offense involving moral turpitude;

4826 80th Legislature — Regular Session 68th Day


(2)iian offense involving a form of sexual or physical abuse of a minor or student or other illegal conduct in which the victim is a minor or student;

(3)iia felony offense involving the possession, transfer, sale, or distribution of or conspiracy to possess, transfer, sell, or distribute a controlled substance, as defined by Chapter 481, Health and Safety Code, or by 21 U.S.C. Section 801 et seq.;

(4)iian offense involving the illegal transfer, appropriation, or use of school district funds or other district property; or

(5)iian offense involving an attempt by fraudulent or unauthorized means to obtain or alter a professional certificate or license issued under this subchapter.

SECTIONi6.iiSections 22.081 and 22.082, Education Code, are amended to read as follows:

Sec.i22.081.iiDEFINITIONS [DEFINITION]. In this subchapter:

(1)ii"Department" means the Department of Public Safety.

(2)ii"National criminal history record information" means criminal history record information obtained from the department under Subchapter F, Chapter 411, Government Code, and from the Federal Bureau of Investigation under Section 411.087, Government Code.

(3)ii"Private[, "private] school" means a school that:

(A)i[(1)]iioffers a course of instruction for students in one or more grades from prekindergarten through grade 12; and

(B)i[(2)]iiis not operated by a governmental entity.

Sec.i22.082.iiACCESS TO CRIMINAL HISTORY RECORDS BY STATE BOARD FOR EDUCATOR CERTIFICATION. The State Board for Educator Certification shall subscribe to the criminal history clearinghouse as provided by Section 411.0845, Government Code, and may obtain from any law enforcement or criminal justice agency all criminal history record information and all records contained in any closed criminal investigation file that relate [relates] to a specific [an] applicant for or holder of a certificate issued under Subchapter B, Chapter 21.

SECTIONi7.iiThe heading to Section 22.083, Education Code, is amended to read as follows:

Sec.i22.083.iiACCESS TO CRIMINAL HISTORY RECORDS OF EMPLOYEES BY LOCAL AND REGIONAL EDUCATION AUTHORITIES.

SECTIONi8.iiSection 22.083, Education Code, is amended by amending Subsections (a) and (b) and adding Subsections (a-1) and (a-2) to read as follows:

(a)iiA school district, open-enrollment charter school, [private school, regional education service center,] or shared services arrangement shall [may] obtain [from any law enforcement or criminal justice agency all] criminal history record information that relates to a person who is not subject to a national criminal history record information review under this subchapter and who is an employee of:

(1)ii[whom] the district or[,] school[, service center, or shared services arrangement intends to employ in any capacity]; or

(2)iia shared services arrangement, if the employee's duties are performed on school property or at another location where students are regularly present [who has indicated, in writing, an intention to serve as a volunteer with the district, school, service center, or shared services arrangement].

Saturday, May 26, 2007 SENATE JOURNAL 4827


(a-1)iiA school district, open-enrollment charter school, or shared services arrangement may obtain the criminal history record information from:

(1)iithe department;

(2)iia law enforcement or criminal justice agency; or

(3)iia private entity that is a consumer reporting agency governed by the Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.).

(a-2)iiA shared services arrangement may obtain from any law enforcement or criminal justice agency all criminal history record information that relates to a person who is not subject to Subsection (a) and whom the shared services arrangement intends to employ in any capacity.

(b)iiA private school or regional education service center may [An open-enrollment charter school shall] obtain from any law enforcement or criminal justice agency all criminal history record information that relates to:

(1)iia person whom the school or service center intends to employ in any capacity; or

(2)iian employee of or applicant for employment by a person that contracts with the school or service center to provide services, if:

(A)iithe employee or applicant has or will have continuing duties related to the contracted services; and

(B)iithe employee or applicant has or will have direct contact with students [a person who has indicated, in writing, an intention to serve as a volunteer with the school].

SECTIONi9.iiSubchapter C, Chapter 22, Education Code, is amended by adding Sections 22.0831 through 22.0837 to read as follows:

Sec.i22.0831.iiNATIONAL CRIMINAL HISTORY RECORD INFORMATION REVIEW OF CERTIFIED EDUCATORS. (a)iiIn this section, "board" means the State Board for Educator Certification.

(b)iiThis section applies to a person who is an applicant for or holder of a certificate under Subchapter B, Chapter 21, and who is employed by or is an applicant for employment by a school district, open-enrollment charter school, or shared services arrangement.

(c)iiThe board shall review the national criminal history record information of a person who has not previously submitted fingerprints to the department or been subject to a national criminal history record information review.

(d)iiThe board shall place an educator's certificate on inactive status for failure to comply with a deadline for submitting information required under this section.

(e)iiThe board may allow a person who is applying for a certificate under Subchapter B, Chapter 21, and who currently resides in another state to submit the person's fingerprints and other required information in a manner that does not impose an undue hardship on the person.

(f)iiThe board may propose rules to implement this section, including rules establishing:

(1)iideadlines for a person to submit fingerprints and photographs in compliance with this section; and

4828 80th Legislature — Regular Session 68th Day


(2)iisanctions for a person's failure to comply with the requirements of this section, including suspension or revocation of a certificate or refusal to issue a certificate.

(g)iiThe board by rule shall establish a schedule for obtaining and reviewing the information a certified educator must provide the board under this section. Not later than September 1, 2011, the board must obtain all national criminal history record information on all certified educators. This subsection expires October 1, 2011.

Sec.i22.0832.iiNATIONAL CRIMINAL HISTORY RECORD INFORMATION REVIEW OF CERTAIN OPEN-ENROLLMENT CHARTER SCHOOL EMPLOYEES. (a)iiThe agency shall review the national criminal history record information of an employee of an open-enrollment charter school to whom Section 12.1059 applies in the same manner as the State Board for Educator Certification reviews certified educators under Section 22.0831. If the agency determines that, based on information contained in an employee's criminal history record information, the employee would not be eligible for educator certification under Subchapter B, Chapter 21, the agency shall notify the open-enrollment charter school in writing that the person may not be employed by the school or serve in a capacity described by Section 12.1059.

(b)iiAn open-enrollment charter school must provide the agency with any information requested by the agency to enable the agency to complete a review under Subsection (a). Failure of an open-enrollment charter school to provide information under this subsection is a material violation of the school's charter.

Sec.i22.0833.iiNATIONAL CRIMINAL HISTORY RECORD INFORMATION REVIEW OF NONCERTIFIED EMPLOYEES. (a)iiThis section applies to a person who is not an applicant for or holder of a certificate under Subchapter B, Chapter 21, and who on or after January 1, 2008, is offered employment by:

(1)iia school district or open-enrollment charter school; or

(2)iia shared services arrangement, if the employee's or applicant's duties are or will be performed on school property or at another location where students are regularly present.

(b)iiA person to whom this section applies must submit to a national criminal history record information review under this section before being employed or serving in a capacity described by Subsection (a).

(c)iiBefore or immediately after employing or securing the services of a person to whom this section applies, a school district, open-enrollment charter school, or shared services arrangement shall send or ensure that the person sends to the department information that is required by the department for obtaining national criminal history record information, which may include fingerprints and photographs.

(d)iiThe department shall obtain the person's national criminal history record information and report the results through the criminal history clearinghouse as provided by Section 411.0845, Government Code.

(e)iiEach school district, open-enrollment charter school, and shared services arrangement shall obtain all criminal history record information that relates to a person to whom this section applies through the criminal history clearinghouse as provided by Section 411.0845, Government Code, and shall subscribe to the criminal history record information of the person.

Saturday, May 26, 2007 SENATE JOURNAL 4829


(f)iiThe school district, open-enrollment charter school, or shared services arrangement may require a person to pay any fees related to obtaining criminal history record information under this section.

(g)iiA school district, open-enrollment charter school, or shared services arrangement shall provide the agency with the name of a person to whom this section applies. The agency shall obtain all criminal history record information of the person through the criminal history clearinghouse as provided by Section 411.0845, Government Code. The agency shall examine the criminal history record information of the person and notify the district, school, or shared services arrangement if the person may not be hired or must be discharged as provided by Section 22.085.

(h)iiThe agency, the State Board for Educator Certification, school districts, open-enrollment charter schools, and shared services arrangements may coordinate as necessary to ensure that criminal history reviews authorized or required under this subchapter are not unnecessarily duplicated.

(i)iiThe department in coordination with the commissioner may adopt rules necessary to implement this section.

Sec.i22.0834.ii CRIMINAL HISTORY RECORD INFORMATION REVIEW OF CERTAIN CONTRACT EMPLOYEES. (a)iiThis subsection applies to a person who is not an applicant for or holder of a certificate under Subchapter B, Chapter 21, and who on or after January 1, 2008, is offered employment by an entity that contracts with a school district, open-enrollment charter school, or shared services arrangement to provide services, if:

(1)iithe employee or applicant has or will have continuing duties related to the contracted services; and

(2)iithe employee or applicant has or will have direct contact with students.

(b)iiA person to whom Subsection (a) applies must submit to a national criminal history record information review under this section before being employed or serving in a capacity described by that subsection.

(c)iiBefore or immediately after employing or securing the services of a person to whom Subsection (a) applies, the entity contracting with a school district, open-enrollment charter school, or shared services arrangement shall send or ensure that the person sends to the department information that is required by the department for obtaining national criminal history record information, which may include fingerprints and photographs. The department shall obtain the person's national criminal history record information and report the results through the criminal history clearinghouse as provided by Section 411.0845, Government Code.

(d)iiAn entity contracting with a school district, open-enrollment charter school, or shared services arrangement shall obtain all criminal history record information that relates to a person to whom Subsection (a) applies through the criminal history clearinghouse as provided by Section 411.0845, Government Code. The entity shall certify to the school district that the entity has received all criminal history record information relating to a person to whom Subsection (a) applies.

(e)iiA school district, open-enrollment charter school, or shared services arrangement may obtain the criminal history record information of a person to whom this section applies through the criminal history clearinghouse as provided by Section 411.0845, Government Code.

4830 80th Legislature — Regular Session 68th Day


(f)iiIn the event of an emergency, a school district may allow a person to whom Subsection (a) or (g) applies to enter school district property if the person is accompanied by a district employee. A school district may adopt rules regarding an emergency situation under this subsection.

(g)iiAn entity that contracts with a school district, open-enrollment charter school, or shared services arrangement to provide services shall obtain from any law enforcement or criminal justice agency or a private entity that is a consumer reporting agency governed by the Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.), all criminal history record information that relates to an employee of the entity who is employed before January 1, 2008, and who is not subject to a national criminal history record information review under Subsection (b) if:

(1)iithe employee has continuing duties related to the contracted services; and

(2)iithe employee has direct contact with students.

(h)iiA school district, open-enrollment charter school, or shared services arrangement may obtain from any law enforcement or criminal justice agency all criminal history record information that relates to a person to whom Subsection (g) applies.

(i)iiAn entity shall certify to a school district that it has received all criminal history record information required by Subsection (g).

(j)iiThe commissioner may adopt rules as necessary to implement this section.

Sec.i22.0835.iiACCESS TO CRIMINAL HISTORY RECORDS OF STUDENT TEACHERS AND VOLUNTEERS BY LOCAL AND REGIONAL EDUCATION AUTHORITIES. (a)iiA school district, open-enrollment charter school, or shared services arrangement shall obtain from the department and may obtain from any other law enforcement or criminal justice agency or a private entity that is a consumer reporting agency governed by the Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.), all criminal history record information that relates to:

(1)iia person participating in an internship consisting of student teaching to receive a teaching certificate; or

(2)iia volunteer or person who has indicated, in writing, an intention to serve as a volunteer with the district, school, or shared services arrangement.

(b)iiA private school or regional education service center may obtain from any law enforcement or criminal justice agency all criminal history record information that relates to a person who volunteers or has indicated, in writing, an intention to serve as a volunteer with the school or service center.

(c)iiA person to whom Subsection (a) or (b) applies must provide to the school district, open-enrollment charter school, private school, regional education service center, or shared services arrangement a driver's license or another form of identification containing the person's photograph issued by an entity of the United States government.

(d)iiA person to whom Subsection (a) applies may not perform any student teaching or volunteer duties until all requirements under Subsections (a) and (c) have been satisfied.

Saturday, May 26, 2007 SENATE JOURNAL 4831


(e)iiSubsections (a) and (c) do not apply to a person who volunteers or is applying to volunteer with a school district, open-enrollment charter school, or shared services arrangement if the person:

(1)iiis the parent, guardian, or grandparent of a child who is enrolled in the district or school for which the person volunteers or is applying to volunteer;

(2)iiwill be accompanied by a school district employee while on a school campus; or

(3)iiis volunteering for a single event on the school campus.

(f)iiA school district, open-enrollment charter school, or shared services arrangement may obtain from any law enforcement or criminal justice agency all criminal history record information that relates to a person to whom Subsection (e) applies.

(g)iiA school district, open-enrollment charter school, private school, regional education service center, or shared services arrangement may require a student teacher, volunteer, or volunteer applicant to pay any costs related to obtaining criminal history record information under this section.

Sec.i22.0836.iiNATIONAL CRIMINAL HISTORY RECORD INFORMATION REVIEW OF SUBSTITUTE TEACHERS. (a)iiThis section applies to a person who is a substitute teacher for a school district, open-enrollment charter school, or shared services arrangement.

(b)iiA person to whom this section applies must submit to a national criminal history record information review under this section.

(c)iiA school district, open-enrollment charter school, or shared services arrangement shall send or ensure that a person to whom this section applies sends to the department information that is required by the department for obtaining national criminal history record information, which may include fingerprints and photographs.

(d)iiThe department shall obtain the person's national criminal history record information and report the results through the criminal history clearinghouse as provided by Section 411.0845, Government Code.

(e)iiEach school district, open-enrollment charter school, and shared services arrangement shall obtain all criminal history record information that relates to a person to whom this section applies through the criminal history clearinghouse as provided by Section 411.0845, Government Code.

(f)iiThe school district, open-enrollment charter school, or shared services arrangement may require a person to pay any fees related to obtaining criminal history record information under this section.

(g)iiA school district, open-enrollment charter school, or shared services arrangement shall provide the agency with the name of a person to whom this section applies. The agency shall obtain all criminal history record information of the person through the criminal history clearinghouse as provided by Section 411.0845, Government Code. The agency shall examine the criminal history record information and certification records of the person and notify the district, school, or shared services arrangement if the person:

(1)iimay not be hired or must be discharged as provided by Section 22.085; or

4832 80th Legislature — Regular Session 68th Day


(2)iimay not be employed as a substitute teacher because the person's educator certification has been revoked or is suspended.

(h)iiThe commissioner may adopt rules to implement this section, including rules establishing deadlines for a school district, open-enrollment charter school, or shared services arrangement to require a person to whom this section applies to submit fingerprints and photographs in compliance with this section and the circumstances under which a person may not continue to be employed as a substitute teacher.

(i)iiThe agency shall establish a schedule for obtaining and reviewing the information a school district, open-enrollment charter school, or shared services arrangement and a substitute teacher must provide under this section. Not later than September 1, 2011, the agency must obtain all national criminal history record information on all substitute teachers. This subsection expires October 1, 2011.

(j)iiThe department in coordination with the commissioner may adopt rules necessary to implement this section.

Sec.i22.0837.iiFEE FOR NATIONAL CRIMINAL HISTORY RECORD INFORMATION. The agency by rule shall require a person submitting to a national criminal history record information review under Section 22.0832, 22.0833, or 22.0836 to pay a fee for the review in an amount not to exceed the amount of any fee imposed on an applicant for certification under Subchapter B, Chapter 21, for a national criminal history record information review under Section 22.0831. The agency or the department may require an entity authorized to collect information for a national criminal history record information review to collect the fee required under this section and to remit the funds collected to the agency.

SECTIONi10.iiSection 22.085, Education Code, is amended to read as follows:

Sec.i22.085.ii[DISCHARGE OF] EMPLOYEES AND APPLICANTS CONVICTED OF CERTAIN OFFENSES. (a)iiA school district, open-enrollment charter school, or shared services arrangement shall discharge or refuse to hire an employee or applicant for employment if the district, school, or shared services arrangement obtains information through a criminal history record information review that:

(1)iithe employee or applicant has been convicted of:

(A)iia felony offense under Title 5, Penal Code;

(B)iian offense on conviction of which a defendant is required to register as a sex offender under Chapter 62, Code of Criminal Procedure; or

(C)iian offense under the laws of another state or federal law that is equivalent to an offense under Paragraph (A) or (B); and

(2)iiat the time the offense occurred, the victim of the offense described by Subdivision (1) was under 18 years of age or was enrolled in a public school.

(b)iiSubsection (a) does not apply if the employee or applicant for employment committed an offense under Title 5, Penal Code and:

(1)iithe date of the offense is more than 30 years before:

(A)iithe effective date of S.B. No. 9, Acts of the 80th Legislature, Regular Session, 2007, in the case of a person employed by a school district, open-enrollment charter school, or shared services arrangement as of that date; or

Saturday, May 26, 2007 SENATE JOURNAL 4833


(B)iithe date the person's employment will begin, in the case of a person applying for employment with a school district, open-enrollment charter school, or shared services arrangement after the effective date of S.B. No. 9, Acts of the 80th Legislature, Regular Session, 2007; and

(2)iithe employee or applicant for employment satisfied all terms of the court order entered on conviction.

(c)iiA school district, open-enrollment charter school, or shared services arrangement may not allow a person who is an employee of or applicant for employment by an entity that contracts with the district, school, or shared services arrangement to serve at the district or school or for the shared services arrangement if the district, school, or shared services arrangement obtains information described by Subsection (a) through a criminal history record information review concerning the employee or applicant. A school district, open-enrollment charter school, or shared services arrangement must ensure that an entity that the district, school, or shared services arrangement contracts with for services has obtained all criminal history record information as required by Section 22.0834.

(d)iiA school district, open-enrollment charter school, private school, regional education service center, or shared services arrangement may discharge an employee if the district or school obtains information of the employee's conviction of a felony or of a misdemeanor involving moral turpitude that the employee did not disclose to the State Board for Educator Certification or the district, school, service center, or shared services arrangement. An employee discharged under this section is considered to have been discharged for misconduct for purposes of Section 207.044, Labor Code.

(e)iiThe State Board for Educator Certification may impose a sanction on an educator who does not discharge an employee or refuse to hire an applicant if the educator knows or should have known, through a criminal history record information review, that the employee or applicant has been convicted of an offense described by Subsection (a).

(f)iiEach school year, the superintendent of a school district or chief operating officer of an open-enrollment charter school shall certify to the commissioner that the district or school has complied with this section.

SECTIONi11.iiSubchapter C, Chapter 22, Education Code, is amended by adding Section 22.087 to read as follows:

Sec.i22.087.iiNOTIFICATION TO STATE BOARD FOR EDUCATOR CERTIFICATION. The superintendent of a school district or the director of an open-enrollment charter school, private school, regional education service center, or shared services arrangement shall promptly notify the State Board for Educator Certification in writing if the person obtains or has knowledge of information showing that an applicant for or holder of a certificate issued under Subchapter B, Chapter 21, has a reported criminal history.

SECTIONi12.iiSubchapter A, Chapter 38, Education Code, is amended by adding Section 38.022 to read as follows:

Sec.i38.022.iiSCHOOL VISITORS. (a)iiA school district may require a person who enters a district campus to display the person's driver's license or another form of identification containing the person's photograph issued by a governmental entity.

4834 80th Legislature — Regular Session 68th Day


(b)iiA school district may establish an electronic database for the purpose of storing information concerning visitors to district campuses. Information stored in the electronic database may be used only for the purpose of school district security and may not be sold or otherwise disseminated to a third party for any purpose.

(c)iiA school district may verify whether a visitor to a district campus is a sex offender registered with the computerized central database maintained by the Department of Public Safety as provided by Article 62.005, Code of Criminal Procedure, or any other database accessible by the district.

(d)iiThe board of trustees of a school district shall adopt a policy regarding the action to be taken by the administration of a school campus when a visitor is identified as a sex offender.

SECTIONi13.iiSection 261.308, Family Code, is amended by adding Subsections (d) and (e) to read as follows:

(d)iiThe department shall release information regarding a person alleged to have committed abuse or neglect to persons who have control over the person's access to children, including, as appropriate, the Texas Education Agency, the State Board for Educator Certification, the local school board or the school's governing body, the superintendent of the school district, or the school principal or director if the department determines that:

(1)iithe person alleged to have committed abuse or neglect poses a substantial and immediate risk of harm to one or more children outside the family of a child who is the subject of the investigation; and

(2)iithe release of the information is necessary to assist in protecting one or more children from the person alleged to have committed abuse or neglect.

(e)iiOn request, the department shall release information about a person alleged to have committed abuse or neglect to the State Board for Educator Certification if the board has a reasonable basis for believing that the information is necessary to assist the board in protecting children from the person alleged to have committed abuse or neglect.

SECTIONi14.iiSubsection (b), Section 261.406, Family Code, is amended to read as follows:

(b)iiThe department shall send a copy of the completed [written] report of the department's investigation[, as appropriate,] to the Texas Education Agency, the State Board for Educator Certification [agency responsible for teacher certification], the local school board or the school's governing body, the superintendent of the school district, and the school principal or director, unless the principal or director is alleged to have committed the abuse or neglect, for appropriate action. On request, the department shall provide a copy of the report of investigation to the parent, managing conservator, or legal guardian of a child who is the subject of the investigation and to the person alleged to have committed the abuse or neglect. The report of investigation shall be edited to protect the identity of the persons who made the report of abuse or neglect. Other than the persons authorized by the section to receive a copy of the report, Section 261.201(b) applies to the release of the report [confidential information] relating to the investigation of [a report of] abuse or neglect under this section and to the identity of the person who made the report of abuse or neglect.

Saturday, May 26, 2007 SENATE JOURNAL 4835


SECTIONi15.iiSection 411.042, Government Code, is amended by amending Subsections (b) and (g) and adding Subsection (h) to read as follows:

(b)iiThe bureau of identification and records shall:

(1)iiprocure and file for record photographs, pictures, descriptions, fingerprints, measurements, and other pertinent information of all persons arrested for or charged with a criminal offense or convicted of a criminal offense, regardless of whether the conviction is probated;

(2)iicollect information concerning the number and nature of offenses reported or known to have been committed in the state and the legal steps taken in connection with the offenses, and other information useful in the study of crime and the administration of justice, including a statistical breakdown of those offenses in which family violence was involved;

(3)iimake ballistic tests of bullets and firearms and chemical analyses of bloodstains, cloth, materials, and other substances for law enforcement officers of the state;

(4)iicooperate with identification and crime records bureaus in other states and the United States Department of Justice;

(5)iimaintain a list of all previous background checks for applicants for any position regulated under Chapter 1702, Occupations Code, who have undergone a criminal history background check under Section 411.119, if the check indicates a Class B misdemeanor or equivalent offense or a greater offense; [and]

(6)iicollect information concerning the number and nature of protective orders and all other pertinent information about all persons on active protective orders. Information in the law enforcement information system relating to an active protective order shall include:

(A)iithe name, sex, race, date of birth, personal descriptors, address, and county of residence of the person to whom the order is directed;

(B)iiany known identifying number of the person to whom the order is directed, including the person's social security number or driver's license number;

(C)iithe name and county of residence of the person protected by the order;

(D)iithe residence address and place of employment or business of the person protected by the order, unless that information is excluded from the order under Section 85.007, Family Code;

(E)iithe child-care facility or school where a child protected by the order normally resides or which the child normally attends, unless that information is excluded from the order under Section 85.007, Family Code;

(F)iithe relationship or former relationship between the person who is protected by the order and the person to whom the order is directed; and

(G)iithe date the order expires; and

(7)iigrant access to criminal history record information in the manner authorized under Subchapter F.

(g)iiThe department may adopt reasonable rules under this section relating to:

(1)iilaw enforcement information systems maintained by the department;

(2)iithe collection, maintenance, and correction of records;

4836 80th Legislature — Regular Session 68th Day


(3)iireports of criminal history information submitted to the department; [and]

(4)iiactive protective orders issued under Chapter 71, Family Code, and reporting procedures that ensure that information relating to the issuance of an active protective order and to the dismissal of an active protective order is reported to the local law enforcement agency at the time of the order's issuance or dismissal and entered by the local law enforcement agency in the state's law enforcement information system; and

(5)iia system for providing criminal history record information through the criminal history clearinghouse under Section 411.0845.

(h)iiThe department may contract with private vendors as necessary in implementing this section.

SECTIONi16.iiSubsection (i), Section 411.081, Government Code, is amended to read as follows:

(i)iiA criminal justice agency may disclose criminal history record information that is the subject of an order of nondisclosure to the following noncriminal justice agencies or entities only:

(1)iithe State Board for Educator Certification;

(2)iia school district, charter school, private school, regional education service center, commercial transportation company, or education shared service arrangement;

(3)iithe Texas Medical [State] Board [of Medical Examiners];

(4)iithe Texas School for the Blind and Visually Impaired;

(5)iithe Board of Law Examiners;

(6)iithe State Bar of Texas;

(7)iia district court regarding a petition for name change under Subchapter B, Chapter 45, Family Code;

(8)iithe Texas School for the Deaf;

(9)iithe Department of Family and Protective Services;

(10)iithe Texas Youth Commission;

(11)iithe Department of Assistive and Rehabilitative Services;

(12)iithe Department of State Health Services, a local mental health service, a local mental retardation authority, or a community center providing services to persons with mental illness or retardation;

(13)iithe Texas Private Security Board;

(14)iia municipal or volunteer fire department;

(15)iithe Board of Nurse Examiners;

(16)iia safe house providing shelter to children in harmful situations;

(17)iia public or nonprofit hospital or hospital district;

(18)iithe Texas Juvenile Probation Commission;

(19)iithe securities commissioner, the banking commissioner, the savings and loan commissioner, or the credit union commissioner;

(20)iithe Texas State Board of Public Accountancy;

(21)iithe Texas Department of Licensing and Regulation;

(22)iithe Health and Human Services Commission; [and]

(23)iithe Department of Aging and Disability Services; and

Saturday, May 26, 2007 SENATE JOURNAL 4837


(24)iithe Texas Education Agency.

SECTIONi17.iiSubsections (b) and (c), Section 411.083, Government Code, are amended to read as follows:

(b)iiThe department shall grant access to criminal history record information to:

(1)iicriminal justice agencies;

(2)iinoncriminal justice agencies authorized by federal statute or executive order or by state statute to receive criminal history record information;

(3)iithe person who is the subject of the criminal history record information;

(4)iia person working on a research or statistical project that:

(A)iiis funded in whole or in part by state funds; or

(B)iimeets the requirements of Part 22, Title 28, Code of Federal Regulations, and is approved by the department;

(5)iian individual or an agency that has a specific agreement with a criminal justice agency to provide services required for the administration of criminal justice under that agreement, if the agreement:

(A)iispecifically authorizes access to information;

(B)iilimits the use of information to the purposes for which it is given;

(C)iiensures the security and confidentiality of the information; and

(D)iiprovides for sanctions if a requirement imposed under Paragraph (A), (B), or (C) is violated;

(6)iian individual or an agency that has a specific agreement with a noncriminal justice agency to provide services related to the use of criminal history record information disseminated under this subchapter, if the agreement:

(A)iispecifically authorizes access to information;

(B)iilimits the use of information to the purposes for which it is given;

(C)iiensures the security and confidentiality of the information; and

(D)iiprovides for sanctions if a requirement imposed under Paragraph (A), (B), or (C) is violated;

(7)iia county or district clerk's office; and

(8)i[(7)]iithe Office of Court Administration of the Texas Judicial System.

(c)iiThe department may disseminate criminal history record information under Subsection (b)(1) only for a criminal justice purpose. The department may disseminate criminal history record information under Subsection (b)(2) only for a purpose specified in the statute or order. The department may disseminate criminal history record information under Subsection (b)(4), (5), or (6) [or (b)(5)] only for a purpose approved by the department and only under rules adopted by the department. The department may disseminate criminal history record information under Subsection (b)(7) [(b)(6)] only to the extent necessary for a county or district clerk to perform a duty imposed by law to collect and report criminal court disposition information. Criminal history record information disseminated to a clerk under Subsection (b)(7) [(b)(6)] may be used by the clerk only to ensure that information reported by the clerk to the department is accurate and complete. The dissemination of information to a clerk under Subsection (b)(7) [(b)(6)] does not affect the authority of the clerk to disclose or use information submitted by the clerk to the department. The department may disseminate criminal history record information under Subsection (b)(8) [(b)(7)] only to the extent necessary for the office of court administration to

4838 80th Legislature — Regular Session 68th Day


perform a duty imposed by law to compile court statistics or prepare reports. The office of court administration may disclose criminal history record information obtained from the department under Subsection (b)(8) [(b)(7)] in a statistic compiled by the office or a report prepared by the office, but only in a manner that does not identify the person who is the subject of the information.

SECTIONi18.iiSubchapter F, Chapter 411, Government Code, is amended by adding Section 411.0845 to read as follows:

Sec.i411.0845.iiCRIMINAL HISTORY CLEARINGHOUSE. (a)iiThe department shall establish an electronic clearinghouse and subscription service to provide criminal history record information to a particular person entitled to receive criminal history record information and updates to a particular record to which the person has subscribed under this subchapter.

(b)iiOn receiving a request for criminal history record information from a person entitled to such information under this subchapter, the department shall provide through the electronic clearinghouse:

(1)iithe criminal history record information reported to the department or the Federal Bureau of Investigation relating to the individual who is the subject of the request; or

(2)iia statement that the individual who is the subject of the request does not have any criminal history record information reported to the department or the Federal Bureau of Investigation.

(c)iiIf the department provides information received from the Federal Bureau of Investigation, the department must include with the information the date the department received information from the Federal Bureau of Investigation.

(d)iiThe department shall ensure that the information described by Subsection (b) is provided only to a person otherwise entitled to obtain criminal history record information under this subchapter. Information collected under this section is confidential and is not subject to disclosure under Chapter 552.

(e)iiA person entitled to receive criminal history record information under this section must provide the department with the following information regarding the person who is the subject of the criminal history record information requested:

(1)iithe person's full name, date of birth, sex, Texas driver's license number or personal identification certificate number, and social security number;

(2)iia recent electronic digital image photograph of the person and a complete set of the person's fingerprints as required by the department; and

(3)iiany other information required by the department.

(f)iiThe department shall maintain an Internet website for the administration of the clearinghouse and an electronic subscription service to provide notice of updates to a particular criminal history record to each person entitled under this subchapter to receive criminal history record information updates to that particular record. The department shall update clearinghouse records as a result of any change in information discovered by the department. Within 48 hours after the department becomes aware that a person's criminal history record information in a clearinghouse record has changed, the department shall provide notice of the updated information only to each subscriber to that specific record.

Saturday, May 26, 2007 SENATE JOURNAL 4839


(g)iiAs soon as practicable, a subscriber who is no longer entitled to receive criminal history record information relating to a particular person shall notify the department. The department shall cancel the person's subscription to that record and may not notify the former subscriber of any updated information to that record.

(h)iiA person who is the subject of the criminal history record information requested under this section must consent to the release of the information.

(i)iiThe release under this section of any criminal history record information maintained by the Federal Bureau of Investigation is subject to federal law and regulations, federal executive orders, and federal policy.

(j)iiThe department may charge a fee for subscription services to cover the costs of administering this section.

(k)iiA governmental agency may coordinate with the department regarding the collection of a fee for the criminal history record information through the fingerprinting fee collection process.

SECTIONi19.iiSection 411.087, Government Code, is amended by adding Subsection (e) to read as follows:

(e)iiThe department may provide access to state and national criminal history record information to nongovernmental entities entitled to that information under 42 U.S.C. Section 5119a. The department must follow federal law and regulation, federal executive orders, and federal policy in releasing information under this subsection.

SECTIONi20.iiSection 411.090, Government Code, is amended by adding Subsection (c) to read as follows:

(c)iiThe department shall notify the State Board for Educator Certification of the arrest of any educator, as defined by Section 5.001, Education Code, who has fingerprints on file with the department.

SECTIONi21.iiSubchapter F, Chapter 411, Government Code, is amended by adding Section 411.0901 to read as follows:

Sec.i411.0901.iiACCESS TO CRIMINAL HISTORY RECORD INFORMATION: TEXAS EDUCATION AGENCY. The Texas Education Agency is entitled to obtain criminal history record information maintained by the department about a person who:

(1)iiis employed or is an applicant for employment by a school district or open-enrollment charter school;

(2)iiis employed or is an applicant for employment by a shared services arrangement, if the employee's or applicant's duties are or will be performed on school property or at another location where students are regularly present; or

(3)iiis employed or is an applicant for employment by an entity that contracts with a school district, open-enrollment charter school, or shared services arrangement if:

(A)iithe employee or applicant has or will have continuing duties relating to the contracted services; and

(B)iithe employee or applicant has or will have direct contact with students.

SECTIONi22.iiThe heading to Section 411.097, Government Code, is amended to read as follows:

4840 80th Legislature — Regular Session 68th Day


Sec.i411.097.iiACCESS TO CRIMINAL HISTORY RECORD INFORMATION: LOCAL AND REGIONAL EDUCATIONAL ENTITIES [SCHOOL DISTRICT, CHARTER SCHOOL, PRIVATE SCHOOL, REGIONAL EDUCATION SERVICE CENTER, COMMERCIAL TRANSPORTATION COMPANY, OR EDUCATION SHARED SERVICES ARRANGEMENT].

SECTIONi23.iiSubsections (a) and (b), Section 411.097, Government Code, are amended to read as follows:

(a)iiA school district, charter school, private school, regional education service center, commercial transportation company, or education shared services arrangement, or an entity that contracts to provide services to a school district, charter school, or shared services arrangement, is entitled to obtain from the department criminal history record information maintained by the department that the district, school, service center, [or] shared services arrangement, or entity is required or authorized to obtain under Subchapter C, Chapter 22, Education Code, that relates to a person who is:

(1)iian applicant for employment by the district, school, service center, or shared services arrangement; [or]

(2)iian employee of or an applicant for employment with a public or commercial transportation company that contracts with the district, school, service center, or shared services arrangement to provide transportation services if the employee drives or the applicant will drive a bus in which students are transported or is employed or is seeking employment as a bus monitor or bus aide on a bus in which students are transported; or

(3)iian employee of or applicant for employment by an entity that contracts to provide services to a school district, charter school, or shared services arrangement as provided by Section 22.0834, Education Code.

(b)iiA school district, charter school, private school, regional education service center, or education shared services arrangement is entitled to obtain from the department[, no more than twice each year,] criminal history record information maintained by the department that the district, school, service center, or shared services arrangement is required or authorized to obtain under Subchapter C, Chapter 22, Education Code, that relates to a person who is a volunteer, student teacher, or employee of the district, school, service center, or shared services arrangement.

SECTIONi24.iiSubsection (a), Section 552.116, Government Code, is amended to read as follows:

(a)iiAn audit working paper of an audit of the state auditor or the auditor of a state agency, an institution of higher education as defined by Section 61.003, Education Code, a county, a municipality, a school district, or a joint board operating under Section 22.074, Transportation Code, including any audit relating to the criminal history background check of a public school employee, is excepted from the requirements of Section 552.021. If information in an audit working paper is also maintained in another record, that other record is not excepted from the requirements of Section 552.021 by this section.

SECTIONi25.iiSubdivision (1), Subsection (b), Section 552.116, Government Code, is amended to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4841


(1)ii"Audit" means an audit authorized or required by a statute of this state or the United States, the charter or an ordinance of a municipality, an order of the commissioners court of a county, a resolution or other action of a board of trustees of a school district, including an audit by the district relating to the criminal history background check of a public school employee, or a resolution or other action of a joint board described by Subsection (a) and includes an investigation.

SECTIONi26.iiSection 730.007, Transportation Code, is amended by adding Subsection (f) to read as follows:

(f)iiPersonal information obtained by an agency under Section 411.0845, Government Code, in connection with a motor vehicle record may be disclosed as provided by that section.

SECTIONi27.iiSubsections (c) and (d), Section 22.083, Education Code, are repealed.

SECTIONi28.iiSection 21.007, Education Code, as added by this Act, applies only to a report for misconduct filed with the State Board for Educator Certification on or after September 1, 2007, regardless of whether the conduct or act that is the subject of the report occurred or was committed before, on, or after that date.

SECTIONi29.iiAs soon as practicable after the effective date of this Act, the State Board for Educator Certification, the Texas Education Agency, a school district, an open-enrollment charter school, or a shared services arrangement shall, in the manner prescribed by Sections 22.0831, 22.0832, 22.0833, and 22.0836, Education Code, as added by this Act, begin obtaining national criminal history record information for employees and applicants for employment who are subject to a national criminal history record information review under those sections.

SECTIONi30.iiAs soon as practicable after the effective date of this Act, an entity that contracts with a school district, open-enrollment charter school, or shared services arrangement shall, in the manner prescribed by Section 22.0834, Education Code, as added by this Act, begin obtaining national criminal history record information for employees and applicants for employment who are subject to a national criminal history record information review under that section.

SECTIONi31.iiBeginning September 1, 2007, a school district, open-enrollment charter school, or shared services arrangement shall obtain, in compliance with Section 22.0835, Education Code, as added by this Act, criminal history record information relating to each person who is a student teacher or volunteer or has indicated in writing an intention to serve as a volunteer with the district, school, or shared services arrangement in any capacity.

SECTIONi32.iiAs soon as practicable after the effective date of this Act, the Department of Public Safety of the State of Texas shall establish a criminal history clearinghouse as required by Section 411.0845, Government Code, as added by this Act.

SECTIONi33.iiSection 552.116, Government Code, as amended by this Act, applies to an audit working paper created before, on, or after the effective date of this Act.

4842 80th Legislature — Regular Session 68th Day


SECTIONi34.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

The Conference Committee Report on SBi9 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1058

Senator West submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi1058 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

WEST NORIEGA
VANiDEiPUTTE CORTE
OGDEN ESCOBAR
SHAPLEIGH GARCIA
ESTES HERRERO
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to reintegration counseling services and related resources for military servicemembers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 431.001, Government Code, is amended by adding Subdivision (1-a) to read as follows:

(1-a)ii"Servicemember" has the meaning assigned by Section 161.551, Health and Safety Code.

SECTIONi2.iiSubchapter B, Chapter 431, Government Code, is amended by adding Section 431.0291 to read as follows:

Sec.i431.0291.iiSERVICE REFERRAL PROGRAM. (a)iiThe department shall develop a program to provide referrals to servicemembers for reintegration services.

(b)iiThe program shall:

(1)iiidentify and make referrals to community-based organizations that have existing programs that provide reintegration services to servicemembers and their families;

Saturday, May 26, 2007 SENATE JOURNAL 4843


(2)iifocus on early intervention and appropriate referral to promote the health of servicemembers and the children and other family members of the servicemembers;

(3)iipromote family cohesion and sustainability;

(4)iibe based on evidence-based best practices related to meeting the needs of servicemembers and the children and other family members of the servicemembers;

(5)iibe carried out, when appropriate, in a community setting through peer counseling and other means effective for community outreach;

(6)iiuse existing service delivery facilities, including churches, National Guard Bureau family education facilities, and veterans centers and support facilities;

(7)iiuse community-based and faith-based organizations;

(8)iibe developed and administered in a manner that promotes collaboration of service providers and results in the referral of servicemembers, their children, and other family members to the appropriate federal, state, and community services for which they are eligible; and

(9)iiprovide information and referral services regarding the risks and consequences of trauma, including post-traumatic stress disorder, traumatic brain injury, and other conditions for which servicemembers are at risk.

(c)iiThe department shall ensure that:

(1)iieach person who provides referrals to servicemembers under the referral program has received sufficient training to ensure that servicemembers receive accurate information; and

(2)iiservicemembers are notified in a timely manner about the service referral program.

(d)iiIn developing the referral program, the department shall consult with the state military forces, the National Guard Bureau, the United States Veterans Health Administration, the Texas A&M Health Science Center College of Medicine, and The University of Texas Health Science Center at San Antonio.

SECTIONi3.iiSection 434.007, Government Code, is amended to read as follows:

Sec.i434.007.iiDUTIES. The commission shall:

(1)iicompile federal, state, and local laws enacted to benefit members of the armed forces, veterans, and their families and dependents;

(2)iicollect information relating to services and facilities available to veterans;

(3)iicooperate with veterans service agencies in the state;

(4)iiinform members and veterans of the armed forces, their families and dependents, and military and civilian authorities about the existence or availability of:

(A)iieducational training and retraining facilities;

(B)iihealth, medical, rehabilitation, and housing services and facilities;

(C)iiemployment and reemployment services;

(D)iiprovisions of federal, state, and local law affording rights, privileges, and benefits to members and veterans of the armed forces and their families and dependents; and

(E)iiother similar, related, or appropriate matters;

4844 80th Legislature — Regular Session 68th Day


(5)iiassist veterans and their families and dependents in presenting, proving, and establishing claims, privileges, rights, and benefits they may have under federal, state, or local law;

(6)iicooperate with all government and private agencies securing services or benefits to veterans and their families and dependents;

(7)iiinvestigate, and if possible correct, abuses or exploitation of veterans or their families or dependents, and recommend necessary legislation for full correction;

(8)iicoordinate the services and activities of state departments and divisions having services and resources affecting veterans or their families or dependents; [and]

(9)iiprovide training and certification of veterans county service officers and assistant veterans county service officers in accordance with Section 434.038; and

(10)iithrough surveys or other reasonable and accurate methods of estimation, collect and maintain for each county in the state the number of servicemembers and veterans residing in the county and annually update and publish the information on the commission's website.

SECTIONi4.iiSubchapter C,iChapter 434, Government Code, is amended by adding Section 434.107 to read as follows:

Sec.i434.107.iiDIRECTORY OF SERVICES. (a)iiThe commission shall collaborate with and assist the Department of State Health Services and the Health and Human Services Commission in compiling and maintaining the directory of services established under Section 161.552, Health and Safety Code.

(b)iiThe commission shall provide the directory of services established under Section 161.552, Health and Safety Code, on the commission's website or through links appearing on the commission's website.

SECTIONi5.iiSubchapter B, Chapter 531, Government Code, is amended by adding Section 531.093 to read as follows:

Sec.i531.093.iiSERVICES FOR MILITARY PERSONNEL. (a)iiIn this section, "servicemember" has the meaning assigned by Section 161.551, Health and Safety Code.

(b)iiThe executive commissioner shall ensure that each health and human services agency adopts policies and procedures that require the agency to:

(1)iiidentify servicemembers who are seeking services from the agency during the agency's intake and eligibility determination process; and

(2)iidirect servicemembers seeking services to appropriate service providers, including the United States Veterans Health Administration, National Guard Bureau facilities, and other federal, state, and local service providers.

(c)iiThe executive commissioner shall make the directory of resources established under Section 161.552, Health and Safety Code, accessible to each health and human services agency.

SECTIONi6.iiiChapter 161, Health and Safety Code, is amended by adding Subchapter U to read as follows:

SUBCHAPTER U. INFORMATION REGARDING PROGRAMS FOR MILITARY PERSONNEL AND THEIR FAMILIES

Sec.i161.551.iiDEFINITIONS. In this subchapter:

(1)ii"Commission" means the Health and Human Services Commission.

(2)ii"Department" means the Department of State Health Services.

Saturday, May 26, 2007 SENATE JOURNAL 4845


(3)ii"Servicemember" means a resident of this state who is a member or former member of the state military forces or a component of the United States armed forces, including a reserve component. In this section, "state military forces" has the meaning assigned by Section 431.001, Government Code.

Sec.i161.552.iiDIRECTORY OF SERVICES. (a)iiThe department and commission shall compile, maintain, and disseminate through the Texas Information and Referral Network and through other appropriate media, a directory of services and other resources, tools, and counseling programs available to servicemembers and their immediate family.

(b)iiThe directory must include:

(1)iiinformation regarding counseling services that:

(A)iifacilitate the reintegration of the servicemember into civilian and family life;

(B)iiidentify and treat stress disorders, trauma, and traumatic brain injury;

(C)iiaddress parenting and family well-being, employment, and substance abuse issues; and

(D)iiprovide crisis intervention services;

(2)iito the greatest degree possible in the judgment of the department, all private and public community, state, and national resources that protect and promote the health and well-being of servicemembers and their immediate family and that are accessible in the state directly or through electronic media, print media, or the Internet; and

(3)iiother resources that support the health of servicemembers and their families.

(c)iiThe department and commission shall organize the directory in a manner that allows a person to locate services in a specific community in the state.

(d)iiThe department and commission shall develop and maintain the directory in collaboration with local, state, and national private and government organizations, including:

(1)iithe United States Veterans Health Administration;

(2)iithe United States Department of Defense;

(3)iithe adjutant general's department;

(4)iithe Texas Veterans Commission; and

(5)iiother public and private national and community-based organizations that provide support to servicemembers and their families.

(e)iiThe department shall provide the directory to the Texas Information and Referral Network of the commission in the time periods and in the manner and format specified by the Texas Information and Referral Network.

(f)iiThe department shall provide the directory on the department's website or through links appearing on the department's website.

SECTIONi7.iiThis Act takes effect September 1, 2007.

The Conference Committee Report on SBi1058 was filed with the Secretary of the Senate.

4846 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1119

Senator Carona submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi1119 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

CARONA MURPHY
DEUELL BAILEY
ELLIS DELISI
WATSON ELKINS
HILL
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED

AN ACT

relating to the authority of a local authority to implement a photographic traffic signal enforcement system; providing for the imposition of civil penalties; providing a criminal penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubtitle I, Title 7, Transportation Code, is amended by adding Chapter 707 to read as follows:

CHAPTER 707. PHOTOGRAPHIC TRAFFIC SIGNAL

ENFORCEMENT SYSTEM

Sec.i707.001.iiDEFINITIONS. In this chapter:

(1)ii"Local authority" has the meaning assigned by Section 541.002.

(2)ii"Owner of a motor vehicle" means the owner of a motor vehicle as shown on the motor vehicle registration records of the Texas Department of Transportation or the analogous department or agency of another state or country.

(3)ii"Photographic traffic signal enforcement system" means a system that:

(A)iiconsists of a camera system and vehicle sensor installed to exclusively work in conjunction with an electrically operated traffic-control signal; and

(B)iiis capable of producing at least two recorded images that depict the license plate attached to the front or the rear of a motor vehicle that is not operated in compliance with the instructions of the traffic-control signal.

(4)ii"Recorded image" means a photographic or digital image that depicts the front or the rear of a motor vehicle.

Saturday, May 26, 2007 SENATE JOURNAL 4847


(5)ii"Traffic-control signal" has the meaning assigned by Section 541.304.

Sec.i707.002.iiAUTHORITY TO PROVIDE FOR CIVIL PENALTY. The governing body of a local authority by ordinance may implement a photographic traffic signal enforcement system and provide that the owner of a motor vehicle is liable to the local authority for a civil penalty if, while facing only a steady red signal displayed by an electrically operated traffic-control signal located in the local authority, the vehicle is operated in violation of the instructions of that traffic-control signal, as specified by Section 544.007(d).

Sec.i707.003.iiINSTALLATION AND OPERATION OF PHOTOGRAPHIC TRAFFIC SIGNAL ENFORCEMENT SYSTEM. (a)iiA local authority that implements a photographic traffic signal enforcement system under this chapter may:

(1)iicontract for the administration and enforcement of the system; and

(2)iiinstall and operate the system or contract for the installation or operation of the system.

(b)iiA local authority that contracts for the administration and enforcement of a photographic traffic signal enforcement system may not agree to pay the contractor a specified percentage of, or dollar amount from, each civil penalty collected.

(c)iiBefore installing a photographic traffic signal enforcement system at an intersection approach, the local authority shall conduct a traffic engineering study of the approach to determine whether, in addition to or as an alternative to the system, a design change to the approach or a change in the signalization of the intersection is likely to reduce the number of red light violations at the intersection.

(d)iiAn intersection approach must be selected for the installation of a photographic traffic signal enforcement system based on traffic volume, the history of accidents at the approach, the number or frequency of red light violations at the intersection, and similar traffic engineering and safety criteria, without regard to the ethnic or socioeconomic characteristics of the area in which the approach is located.

(e)iiA local authority shall report results of the traffic engineering study required by Subsection (c) to a citizen advisory committee consisting of one person appointed by each member of the governing body of the local authority. The committee shall advise the local authority on the installation and operation of a photographic traffic signal enforcement system established under this chapter.

(f)iiA local authority may not impose a civil penalty under this chapter on the owner of a motor vehicle if the local authority violates Subsection (b) or (c).

(g)iiThe local authority shall install signs along each roadway that leads to an intersection at which a photographic traffic signal enforcement system is in active use. The signs must be at least 100 feet from the intersection or located according to standards established in the manual adopted by the Texas Transportation Commission under Section 544.001, be easily readable to any operator approaching the intersection, and clearly indicate the presence of a photographic monitoring system that records violations that may result in the issuance of a notice of violation and the imposition of a monetary penalty.

(h)iiA local authority or the person with which the local authority contracts for the administration and enforcement of a photographic traffic signal enforcement system may not provide information about a civil penalty imposed under this chapter to a credit bureau, as defined by Section 392.001, Finance Code.

4848 80th Legislature — Regular Session 68th Day


Sec.i707.004.iiREPORT OF ACCIDENTS. (a) In this section, "department" means the Texas Department of Transportation.

(b)iiBefore installing a photographic traffic signal enforcement system at an intersection approach, the local authority shall compile a written report of the number and type of traffic accidents that have occurred at the intersection for a period of at least 18 months before the date of the report.

(c)iiNot later than six months after the date of the installation of the photographic traffic signal enforcement system at the intersection, the local authority shall provide the department a copy of the report required by Subsection (b).

(d)iiAfter installing a photographic traffic signal enforcement system at an intersection approach, the local authority shall monitor and annually report to the department the number and type of traffic accidents at the intersection to determine whether the system results in a reduction in accidents or a reduction in the severity of accidents.

(e)iiThe report must be in writing in the form prescribed by the department.

(f)iiNot later than December 1 of each year, the department shall publish the information submitted by a local authority under Subsection (d).

Sec.i707.005.iiMINIMUM CHANGE INTERVAL. At an intersection at which a photographic traffic monitoring system is in use, the minimum change interval for a steady yellow signal must be established in accordance with the Texas Manual on Uniform Traffic Control Devices.

Sec.i707.006.iiGENERAL SURVEILLANCE PROHIBITED; OFFENSE. (a) A local authority shall operate a photographic traffic control signal enforcement system only for the purpose of detecting a violation or suspected violation of a traffic-control signal.

(b)iiA person commits an offense if the person uses a photographic traffic signal enforcement system to produce a recorded image other than in the manner and for the purpose specified by this chapter.

(c)iiAn offense under this section is a Class A misdemeanor.

Sec.i707.007.iiAMOUNT OF CIVIL PENALTY; LATE PAYMENT PENALTY. If a local authority enacts an ordinance to enforce compliance with the instructions of a traffic-control signal by the imposition of a civil or administrative penalty, the amount of:

(1)iithe civil or administrative penalty may not exceed $75; and

(2)iia late payment penalty may not exceed $25.

Sec.i707.008.iiDEPOSIT OF REVENUE FROM CERTAIN TRAFFIC PENALTIES. (a) Not later than the 60th day after the end of a local authority's fiscal year, after deducting amounts the local authority is authorized by Subsection (b) to retain, the local authority shall:

(1)iisend 50 percent of the revenue derived from civil or administrative penalties collected by the local authority under this section to the comptroller for deposit to the credit of the regional trauma account established under Section 782.002, Health and Safety Code; and

Saturday, May 26, 2007 SENATE JOURNAL 4849


(2)iideposit the remainder of the revenue in a special account in the local authority's treasury that may be used only to fund traffic safety programs, including pedestrian safety programs, public safety programs, intersection improvements, and traffic enforcement.

(b)iiA local authority may retain an amount necessary to cover the costs of:

(1)iipurchasing or leasing equipment that is part of or used in connection with the photographic traffic signal enforcement system in the local authority;

(2)iiinstalling the photographic traffic signal enforcement system at sites in the local authority, including the costs of installing cameras, flashes, computer equipment, loop sensors, detectors, utility lines, data lines, poles and mounts, networking equipment, and associated labor costs;

(3)iioperating the photographic traffic signal enforcement system in the local authority, including the costs of creating, distributing, and delivering violation notices, review of violations conducted by employees of the local authority, the processing of fine payments and collections, and the costs associated with administrative adjudications and appeals; and

(4)iimaintaining the general upkeep and functioning of the photographic traffic signal enforcement system.

(c)iiChapter 133, Local Government Code, applies to fee revenue described by Subsection (a)(1).

(d)iiIf under Section 133.059, Local Government Code, the comptroller conducts an audit of a local authority and determines that the local authority retained more than the amounts authorized by this section or failed to deposit amounts as required by this section, the comptroller may impose a penalty on the local authority equal to twice the amount the local authority:

(1)iiretained in excess of the amount authorized by this section; or

(2)iifailed to deposit as required by this section.

Sec.i707.009.iiREQUIRED ORDINANCE PROVISIONS. An ordinance adopted under Section 707.002 must provide that a person against whom the local authority seeks to impose a civil penalty is entitled to a hearing and shall:

(1)iiprovide for the period in which the hearing must be held;

(2)iiprovide for the appointment of a hearing officer with authority to administer oaths and issue orders compelling the attendance of witnesses and the production of documents; and

(3)iidesignate the department, agency, or office of the local authority responsible for the enforcement and administration of the ordinance or provide that the entity with which the local authority contracts under Section 707.003(a)(1) is responsible for the enforcement and administration of the ordinance.

Sec.i707.010.iiEFFECT ON OTHER ENFORCEMENT. (a)iiThe implementation of a photographic traffic signal enforcement system by a local authority under this chapter does not:

(1)iipreclude the application or enforcement in the local authority of Section 544.007(d) in the manner prescribed by Chapter 543; or

(2)iiprohibit a peace officer from arresting a violator of Section 544.007(d) as provided by Chapter 543, if the peace officer personally witnesses the violation, or from issuing the violator a citation and notice to appear as provided by that chapter.

4850 80th Legislature — Regular Session 68th Day


(b)iiA local authority may not impose a civil penalty under this chapter on the owner of a motor vehicle if the operator of the vehicle was arrested or issued a citation and notice to appear by a peace officer for the same violation of Section 544.007(d) recorded by the photographic traffic signal enforcement system.

Sec.i707.011.iiNOTICE OF VIOLATION; CONTENTS. (a)iiThe imposition of a civil penalty under this chapter is initiated by the mailing of a notice of violation to the owner of the motor vehicle against whom the local authority seeks to impose the civil penalty.

(b)iiNot later than the 30th day after the date the violation is alleged to have occurred, the designated department, agency, or office of the local authority or the entity with which the local authority contracts under Section 707.003(a)(1) shall mail the notice of violation to the owner at:

(1)iithe owner's address as shown on the registration records of the Texas Department of Transportation; or

(2)iiif the vehicle is registered in another state or country, the owner's address as shown on the motor vehicle registration records of the department or agency of the other state or country analogous to the Texas Department of Transportation.

(c)iiThe notice of violation must contain:

(1)iia description of the violation alleged;

(2)iithe location of the intersection where the violation occurred;

(3)iithe date and time of the violation;

(4)iithe name and address of the owner of the vehicle involved in the violation;

(5)iithe registration number displayed on the license plate of the vehicle involved in the violation;

(6)iia copy of a recorded image of the violation limited solely to a depiction of the area of the registration number displayed on the license plate of the vehicle involved in the violation;

(7)iithe amount of the civil penalty for which the owner is liable;

(8)iithe number of days the person has in which to pay or contest the imposition of the civil penalty and a statement that the person incurs a late payment penalty if the civil penalty is not paid or imposition of the penalty is not contested within that period;

(9)iia statement that the owner of the vehicle in the notice of violation may elect to pay the civil penalty by mail sent to a specified address instead of appearing at the time and place of the administrative adjudication hearing; and

(10)iiinformation that informs the owner of the vehicle named in the notice of violation:

(A)iiof the owner's right to contest the imposition of the civil penalty against the person in an administrative adjudication hearing;

(B)iithat imposition of the civil penalty may be contested by submitting a written request for an administrative adjudication hearing before the expiration of the period specified under Subdivision (8); and

Saturday, May 26, 2007 SENATE JOURNAL 4851


(C)iithat failure to pay the civil penalty or to contest liability for the penalty in a timely manner is an admission of liability and a waiver of the owner's right to appeal the imposition of the civil penalty.

(d)iiA notice of violation is presumed to have been received on the fifth day after the date the notice is mailed.

Sec.i707.012.iiADMISSION OF LIABILITY. A person who fails to pay the civil penalty or to contest liability for the penalty in a timely manner or who requests an administrative adjudication hearing to contest the imposition of the civil penalty against the person and fails to appear at that hearing is considered to:

(1)iiadmit liability for the full amount of the civil penalty stated in the notice of violation mailed to the person; and

(2)iiwaive the person's right to appeal the imposition of the civil penalty.

Sec.i707.013.iiPRESUMPTION. (a)iiIt is presumed that the owner of the motor vehicle committed the violation alleged in the notice of violation mailed to the person if the motor vehicle depicted in a photograph or digital image taken by a photographic traffic signal enforcement system belongs to the owner of the motor vehicle.

(b)iiIf, at the time of the violation alleged in the notice of violation, the motor vehicle depicted in a photograph or digital image taken by a photographic traffic signal enforcement system was owned by a person in the business of selling, renting, or leasing motor vehicles or by a person who was not the person named in the notice of violation, the presumption under Subsection (a) is rebutted on the presentation of evidence establishing that the vehicle was at that time:

(1)iibeing test driven by another person;

(2)iibeing rented or leased by the vehicle's owner to another person; or

(3)iiowned by a person who was not the person named in the notice of violation.

(c)iiNotwithstanding Section 707.014, the presentation of evidence under Subsection (b) by a person who is in the business of selling, renting, or leasing motor vehicles or did not own the vehicle at the time of the violation must be made by affidavit, through testimony at the administrative adjudication hearing under Section 707.014, or by a written declaration under penalty of perjury. The affidavit or written declaration may be submitted by mail to the local authority or the entity with which the local authority contracts under Section 707.003(a)(1).

(d)iiIf the presumption established by Subsection (a) is rebutted under Subsection (b), a civil penalty may not be imposed on the owner of the vehicle or the person named in the notice of violation, as applicable.

(e)iiIf, at the time of the violation alleged in the notice of violation, the motor vehicle depicted in the photograph or digital image taken by the photographic traffic signal enforcement system was owned by a person in the business of renting or leasing motor vehicles and the vehicle was being rented or leased to an individual, the owner of the motor vehicle shall provide to the local authority or the entity with which the local authority contracts under Section 707.003(a)(1) the name and address of the individual who was renting or leasing the motor vehicle depicted in the photograph or digital image and a statement of the period during which that individual was renting or leasing the vehicle. The owner shall provide the information required by this subsection not later than the 30th day after the date the notice of violation is received.

4852 80th Legislature — Regular Session 68th Day


If the owner provides the required information, it is presumed that the individual renting or leasing the motor vehicle committed the violation alleged in the notice of violation and the local authority or contractor may send a notice of violation to that individual at the address provided by the owner of the motor vehicle.

Sec.i707.014.iiADMINISTRATIVE ADJUDICATION HEARING. (a)iiA person who receives a notice of violation under this chapter may contest the imposition of the civil penalty specified in the notice of violation by filing a written request for an administrative adjudication hearing. The request for a hearing must be filed on or before the date specified in the notice of violation, which may not be earlier than the 30th day after the date the notice of violation was mailed.

(b)iiOn receipt of a timely request for an administrative adjudication hearing, the local authority shall notify the person of the date and time of the hearing.

(c)iiA hearing officer designated by the governing body of the local authority shall conduct the administrative adjudication hearing.

(d)iiIn an administrative adjudication hearing, the issues must be proven by a preponderance of the evidence.

(e)iiThe reliability of the photographic traffic signal enforcement system used to produce the recorded image of the motor vehicle involved in the violation may be attested to by affidavit of an officer or employee of the local authority or of the entity with which the local authority contracts under Section 707.003(a)(1) who is responsible for inspecting and maintaining the system.

(f)iiAn affidavit of an officer or employee of the local authority or entity that alleges a violation based on an inspection of the applicable recorded image is:

(1)iiadmissible in the administrative adjudication hearing and in an appeal under Section 707.016; and

(2)iievidence of the facts contained in the affidavit.

(g)iiAt the conclusion of the administrative adjudication hearing, the hearing officer shall enter a finding of liability for the civil penalty or a finding of no liability for the civil penalty. A finding under this subsection must be in writing and be signed and dated by the hearing officer.

(h)iiA finding of liability for a civil penalty must specify the amount of the civil penalty for which the person is liable. If the hearing officer enters a finding of no liability, a civil penalty for the violation may not be imposed against the person.

(i)iiA finding of liability or a finding of no liability entered under this section may:

(1)iibe filed with the clerk or secretary of the local authority or with a person designated by the governing body of the local authority; and

(2)iibe recorded on microfilm or microfiche or using data processing techniques.

Sec.i707.015.iiUNTIMELY REQUEST FOR ADMINISTRATIVE ADJUDICATION HEARING. Notwithstanding any other provision of this chapter, a person who receives a notice of violation under this chapter and who fails to timely pay the amount of the civil penalty or fails to timely request an administrative adjudication hearing is entitled to an administrative adjudication hearing if:

Saturday, May 26, 2007 SENATE JOURNAL 4853


(1)iithe person submits a written request for the hearing to the designated hearing officer, accompanied by an affidavit that attests to the date on which the person received the notice of violation; and

(2)iithe written request and affidavit are submitted to the hearing officer within the same number of days after the date the person received the notice of violation as specified under Section 707.011(c)(8).

Sec.i707.016.iiAPPEAL. (a)iiThe owner of a motor vehicle determined by a hearing officer to be liable for a civil penalty may appeal that determination to a judge by filing an appeal petition with the clerk of the court. The petition must be filed with:

(1)iia justice court of the county in which the local authority is located; or

(2)iiif the local authority is a municipality, the municipal court of the municipality.

(b)iiThe petition must be:

(1)iifiled before the 31st day after the date on which the administrative adjudication hearing officer entered the finding of liability for the civil penalty; and

(2)iiaccompanied by payment of the costs required by law for the court.

(c)iiThe court clerk shall schedule a hearing and notify the owner of the motor vehicle and the appropriate department, agency, or office of the local authority of the date, time, and place of the hearing.

(d)iiAn appeal stays enforcement and collection of the civil penalty imposed against the owner of the motor vehicle. The owner shall file a notarized statement of personal financial obligation to perfect the owner's appeal.

(e)iiAn appeal under this section shall be determined by the court by trial de novo.

Sec.i707.017.iiENFORCEMENT. If the owner of a motor vehicle is delinquent in the payment of a civil penalty imposed under this chapter, the county assessor-collector or the Texas Department of Transportation may refuse to register a motor vehicle alleged to have been involved in the violation.

Sec.i707.018.iiIMPOSITION OF CIVIL PENALTY NOT A CONVICTION. The imposition of a civil penalty under this chapter is not a conviction and may not be considered a conviction for any purpose.

Sec.i707.019.iiFAILURE TO PAY CIVIL PENALTY. (a)iiIf the owner of the motor vehicle fails to timely pay the amount of the civil penalty imposed against the owner:

(1)iian arrest warrant may not be issued for the owner; and

(2)iithe imposition of the civil penalty may not be recorded on the owner's driving record.

(b)iiNotice of Subsection (a) must be included in the notice of violation required by Section 707.011(c).

SECTIONi2.iiSubsection (a), Section 27.031, Government Code, is amended to read as follows:

(a)iiIn addition to the jurisdiction and powers provided by the constitution and other law, the justice court has original jurisdiction of:

4854 80th Legislature — Regular Session 68th Day


(1)iicivil matters in which exclusive jurisdiction is not in the district or county court and in which the amount in controversy is not more than $5,000, exclusive of interest;

(2)iicases of forcible entry and detainer; [and]

(3)iiforeclosure of mortgages and enforcement of liens on personal property in cases in which the amount in controversy is otherwise within the justice court's jurisdiction; and

(4)iicases arising under Chapter 707, Transportation Code, outside a municipality's territorial limits.

SECTIONi3.iiSection 29.003, Government Code, is amended by adding Subsection (g) to read as follows:

(g)iiA municipal court, including a municipal court of record, shall have exclusive appellate jurisdiction within the municipality's territorial limits in a case arising under Chapter 707, Transportation Code.

SECTIONi4.iiSection 133.004, Local Government Code, is amended to read as follows:

Sec.i133.004.iiCIVIL FEES. This chapter applies to the following civil fees:

(1)iithe consolidated fee on filing in district court imposed under Section 133.151;

(2)iithe filing fee in district court for basic civil legal services for indigents imposed under Section 133.152;

(3)iithe filing fee in courts other than district court for basic civil legal services for indigents imposed under Section 133.153;

(4)iithe filing fees for the judicial fund imposed in certain statutory county courts under Section 51.702, Government Code;

(5)iithe filing fees for the judicial fund imposed in certain county courts under Section 51.703, Government Code;

(6)iithe filing fees for the judicial fund imposed in certain statutory probate courts under Section 51.704, Government Code;

(7)iifees collected under Section 118.015;

(8)iimarriage license fees for the family trust fund collected under Section 118.018;

(9)iimarriage license or declaration of informal marriage fees for the child abuse and neglect prevention trust fund account collected under Section 118.022; [and]

(10)iithe filing fee for the judicial fund imposed in district court, statutory county court, and county court under Section 133.154; and

(11)iithe portion of the civil or administrative penalty described by Section 707.008(a)(1), Transportation Code, imposed by a local authority to enforce compliance with the instructions of a traffic-control signal.

SECTIONi5.iiSubtitle B, Title 9, Health and Safety Code, is amended by adding Chapter 782 to read as follows:

CHAPTER 782. REGIONAL EMERGENCY MEDICAL SERVICES

Sec.i782.001.iiDEFINITIONS. In this chapter:

(1)ii"Commission" means the Health and Human Services Commission.

Saturday, May 26, 2007 SENATE JOURNAL 4855


(2)ii"Commissioner" means the executive commissioner of the Health and Human Services Commission.

Sec.i782.002.iiREGIONAL TRAUMA ACCOUNT. (a)iiThe regional trauma account is created as a dedicated account in the general revenue fund of the state treasury. Money in the account may be appropriated only to the commission to make distributions as provided by Section 782.003.

(b)iiThe account is composed of money deposited to the credit of the account under Section 707.008, Transportation Code, and the earnings of the account.

(c)iiSections 403.095 and 404.071, Government Code, do not apply to the account.

Sec.i782.003.iiPAYMENTS FROM THE REGIONAL TRAUMA ACCOUNT. (a)iiThe commissioner shall use money appropriated from the regional trauma account established under Section 782.002 to fund uncompensated care of designated trauma facilities and county and regional emergency medical services located in the area served by the trauma service area regional advisory council that serves the local authority submitting money under Section 707.008, Transportation Code.

(b)iiIn any fiscal year, the commissioner shall use:

(1)ii96 percent of the money appropriated from the account to fund a portion of the uncompensated trauma care provided at facilities designated as state trauma facilities by the Department of State Health Services;

(2)iitwo percent of the money appropriated from the account for county and regional emergency medical services;

(3)iione percent of the money appropriated from the account for distribution to the 22 trauma service area regional advisory councils; and

(4)iione percent of the money appropriated from the account to fund administrative costs of the commission.

(c)iiThe money under Subsection (b) shall be distributed in proportion to the amount deposited to the account from the local authority.

SECTIONi6.iiSection 707.008, Transportation Code, as added by this Act, and Section 782.002, Health and Safety Code, as added by this Act, apply to revenue received by a local authority unit of this state from the imposition of a civil or administrative penalty on or after the effective date of this Act, regardless of whether the penalty was imposed before, on, or after the effective date of this Act.

SECTIONi7.iiNot later than December 1, 2007, the executive commissioner of the Health and Human Services Commission shall adopt rules to implement Chapter 782, Health and Safety Code, as added by this Act.

SECTIONi8.iiThe reporting and publication requirements imposed by Section 707.004, Transportation Code, as added by this Act, apply only to a year beginning on or after January 1, 2008.

SECTIONi9.iiSection 707.003, Transportation Code, as added by this Act, applies only to a contract entered into on or after the effective date of this Act.

SECTIONi10.iiThis Act takes effect September 1, 2007.

The Conference Committee Report on SBi1119 was filed with the Secretary of the Senate.

4856 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1919

Senator Van de Putte submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi1919 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

VANiDEiPUTTE T. SMITH
ELLIS J. DAVIS
LUCIO FARABEE
DUNCAN HANCOCK
On the part of the Senate On the part of the House

The Conference Committee Report on HBi1919 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2667

Senator Deuell submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2667 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

DEUELL LATHAM
LUCIO DRIVER
VANiDEiPUTTE PAXTON
HINOJOSA J. DAVIS
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2667 was filed with the Secretary of the Senate.

Saturday, May 26, 2007 SENATE JOURNAL 4857


CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1871

Senator Zaffirini submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi1871 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

ZAFFIRINI HOCHBERG
VAN DE PUTTE EISSLER
CARONA KOLKHORST
HEGAR MOWERY
SELIGER OLIVO
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to the compilation and reporting by the Texas Education Agency of certain data regarding students enrolled in public school or in preschool programs.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 28.006, Education Code, is amended by amending Subsection (d) and adding Subsection (d-1) to read as follows:

(d)iiThe superintendent of each school district shall:

(1)iireport to the commissioner and the board of trustees of the district the results of the reading instruments; [and]

(2)iireport, in writing, to a student's parent or guardian the student's results on the reading instrument; and

(3)iiusing the school readiness certification system provided to the school district in accordance with Section 29.161(e), report electronically each student's raw score on the reading instrument to the agency for use in the school readiness certification system.

(d-1)iiThe agency shall contract with the State Center for Early Childhood Development to receive and use scores under Subsection (d)(3) on behalf of the agency.

SECTIONi2.iiSubchapter B, Chapter 29, Education Code, is amended by adding Section 29.066 to read as follows:

4858 80th Legislature — Regular Session 68th Day


Sec.i29.066.iiPEIMS REPORTING REQUIREMENTS. (a)iiA school district that is required to offer bilingual education or special language programs shall include the following information in the district's Public Education Information Management System (PEIMS) report:

(1)iidemographic information, as determined by the commissioner, on students enrolled in district bilingual education or special language programs;

(2)iithe number and percentage of students enrolled in each instructional model of a bilingual education or special language program offered by the district; and

(3)iithe number and percentage of students identified as students of limited English proficiency who do not receive specialized instruction.

(b)iiFor purposes of this section, the commissioner shall adopt rules to classify programs under this section as follows:

(1)iiif the program is a bilingual education program, the program must be classified under the Public Education Information Management System (PEIMS) report as:

(A)iitransitional bilingual/early exit: a bilingual program that serves students identified as students of limited English proficiency in both English and Spanish and transfers a student to English-only instruction not earlier than two or later than five years after the student enrolls in school;

(B)iitransitional bilingual/late exit: a bilingual program that serves students identified as students of limited English proficiency in both English and Spanish and transfers a student to English-only instruction not earlier than six or later than seven years after the student enrolls in school;

(C)iidual language immersion/two-way: a biliteracy program that integrates students proficient in English and students identified as students of limited English proficiency in both English and Spanish and transfers a student identified as a student of limited English proficiency to English-only instruction not earlier than six or later than seven years after the student enrolls in school; or

(D)iidual language immersion/one-way: a biliteracy program that serves only students identified as students of limited English proficiency in both English and Spanish and transfers a student to English-only instruction not earlier than six or later than seven years after the student enrolls in school; and

(2)iiif the program is a special language program, the program must be classified under the Public Education Information Management System (PEIMS) report as:

(A)iiEnglish as a second language/content-based: an English program that serves students identified as students of limited English proficiency in English only by providing a full-time teacher certified under Section 29.061(c) to provide supplementary instruction for all content area instruction; or

(B)iiEnglish as a second language/pull-out: an English program that serves students identified as students of limited English proficiency in English only by providing a part-time teacher certified under Section 29.061(c) to provide English language arts instruction exclusively, while the student remains in a mainstream instructional arrangement in the remaining content areas.

Saturday, May 26, 2007 SENATE JOURNAL 4859


(c)iiIf the school district has received a waiver and is not required to offer a bilingual education or special language program in a student's native language or if the student's parents have refused to approve the student's entry into a program as provided by Section 29.056, the program must be classified under the Public Education Information Management System (PEIMS) report as: no bilingual education or special language services provided.

SECTIONi3.iiSection 29.161, Education Code, is amended by amending Subsection (c) and adding Subsections (d), (e), and (f) to read as follows:

(c)iiThe system must:

(1)iibe reflective of research in the field of early childhood care and education;

(2)iibe well-grounded in the cognitive, social, and emotional development of young children; [and]

(3)iiapply a common set of criteria to each program provider seeking certification, regardless of the type of program or source of program funding; and

(4)iibe capable of fulfilling the reporting and notice requirements of Sections 28.006(d) and (g).

(d)iiThe agency shall collect each student's raw score results on the reading instrument administered under Section 28.006 from each school district using the system created under Subsection (a) and shall contract with the State Center for Early Childhood Development for purposes of this section.

(e)iiThe State Center for Early Childhood Development shall, using funds appropriated for the school readiness certification system, provide the system created under Subsection (a) to each school district to report each student's raw score results on the reading instrument administered under Section 28.006.

(f)iiThe agency shall:

(1)iiprovide assistance to the State Center for Early Childhood Development in developing and adopting the school readiness certification system under this section, including providing access to data for the purpose of locating the teacher and campus of record for students; and

(2)iirequire confidentiality and other security measures for student data provided to the State Center for Early Childhood Development as the agency's agent, consistent with the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g).

SECTIONi4.iiSubsection (e), Section 39.027, Education Code, is amended to read as follows:

(e)iiThe commissioner shall develop an assessment system that shall be used for evaluating the academic progress, including reading proficiency in English, of all students of limited English proficiency, as defined by Section 29.052. A student who is exempt from the administration of an assessment instrument under Subsection (a)(3) or (4) who achieves reading proficiency in English as determined by the assessment system developed under this subsection shall be administered the assessment instruments described by Sections 39.023(a) and (c). The performance under the assessment system developed under this subsection of students to whom Subsection (a)(3) or (4) applies shall be included in the academic excellence indicator system under Section 39.051, the performance report under Section 39.053, and the

4860 80th Legislature — Regular Session 68th Day


comprehensive annual report under Section 39.182. This information shall be provided in a manner that is disaggregated by the bilingual education or special language program, if any, in which the student is enrolled.

SECTIONi5.iiSection 39.051, Education Code, is amended by adding Subsection (b-1) to read as follows:

(b-1)iiPerformance on the indicators described by Subsections (b)(1), (2), (3), (8), (9), and (14) must be based on longitudinal student data that is disaggregated by the bilingual education or special language program, if any, in which students of limited English proficiency, as defined by Section 29.052, are or former students of limited English proficiency were enrolled. If a student described by this subsection is not or was not enrolled in specialized language instruction, the number and percentage of those students shall be provided.

SECTIONi6.iiSection 39.182, Education Code, is amended by amending Subsections (a) and (b) and adding Subsection (b-1) to read as follows:

(a)iiNot later than December 1 of each year, the agency shall prepare and deliver to the governor, the lieutenant governor, the speaker of the house of representatives, each member of the legislature, the Legislative Budget Board, and the clerks of the standing committees of the senate and house of representatives with primary jurisdiction over the public school system a comprehensive report covering the preceding school year and containing:

(1)iian evaluation of the achievements of the state educational program in relation to the statutory goals for the public education system under Section 4.002;

(2)iian evaluation of the status of education in the state as reflected by the academic excellence indicators adopted under Section 39.051;

(3)iia summary compilation of overall student performance on academic skills assessment instruments required by Section 39.023 with the number and percentage of students exempted from the administration of those instruments and the basis of the exemptions, aggregated by grade level, subject area, campus, and district, with appropriate interpretations and analysis, and disaggregated by race, ethnicity, gender, and socioeconomic status;

(4)iia summary compilation of overall performance of students placed in a disciplinary alternative education program established under Section 37.008 on academic skills assessment instruments required by Section 39.023 with the number of those students exempted from the administration of those instruments and the basis of the exemptions, aggregated by district, grade level, and subject area, with appropriate interpretations and analysis, and disaggregated by race, ethnicity, gender, and socioeconomic status;

(5)iia summary compilation of overall performance of students at risk of dropping out of school, as defined by Section 29.081(d), on academic skills assessment instruments required by Section 39.023 with the number of those students exempted from the administration of those instruments and the basis of the exemptions, aggregated by district, grade level, and subject area, with appropriate interpretations and analysis, and disaggregated by race, ethnicity, gender, and socioeconomic status;

(6)iian evaluation of the correlation between student grades and student performance on academic skills assessment instruments required by Section 39.023;

Saturday, May 26, 2007 SENATE JOURNAL 4861


(7)iia statement of the dropout rate of students in grade levels 7 through 12, expressed in the aggregate and by grade level, and a statement of the completion rates of students for grade levels 9 through 12;

(8)iia statement of:

(A)iithe completion rate of students who enter grade level 9 and graduate not more than four years later;

(B)iithe completion rate of students who enter grade level 9 and graduate, including students who require more than four years to graduate;

(C)iithe completion rate of students who enter grade level 9 and not more than four years later receive a high school equivalency certificate;

(D)iithe completion rate of students who enter grade level 9 and receive a high school equivalency certificate, including students who require more than four years to receive a certificate; and

(E)iithe number and percentage of all students who have not been accounted for under Paragraph (A), (B), (C), or (D);

(9)iia statement of the projected cross-sectional and longitudinal dropout rates for grade levels 9 through 12 for the next five years, assuming no state action is taken to reduce the dropout rate;

(10)iia description of a systematic, measurable plan for reducing the projected cross-sectional and longitudinal dropout rates to five percent or less for the 1997-1998 school year;

(11)iia summary of the information required by Section 29.083 regarding grade level retention of students and information concerning:

(A)iithe number and percentage of students retained; and

(B)iithe performance of retained students on assessment instruments required under Section 39.023(a);

(12)iiinformation, aggregated by district type and disaggregated by race, ethnicity, gender, and socioeconomic status, on:

(A)iithe number of students placed in a disciplinary alternative education program established under Section 37.008;

(B)iithe average length of a student's placement in a disciplinary alternative education program established under Section 37.008;

(C)iithe academic performance of students on assessment instruments required under Section 39.023(a) during the year preceding and during the year following placement in a disciplinary alternative education program; and

(D)iithe dropout rates of students who have been placed in a disciplinary alternative education program established under Section 37.008;

(13)iia list of each school district or campus that does not satisfy performance standards, with an explanation of the actions taken by the commissioner to improve student performance in the district or campus and an evaluation of the results of those actions;

(14)iian evaluation of the status of the curriculum taught in public schools, with recommendations for legislative changes necessary to improve or modify the curriculum required by Section 28.002;

(15)iia description of all funds received by and each activity and expenditure of the agency;

4862 80th Legislature — Regular Session 68th Day


(16)iia summary and analysis of the instructional expenditures ratios and instructional employees ratios of school districts computed under Section 44.0071;

(17)iia summary of the effect of deregulation, including exemptions and waivers granted under Section 7.056 or 39.112;

(18)iia statement of the total number and length of reports that school districts and school district employees must submit to the agency, identifying which reports are required by federal statute or rule, state statute, or agency rule, and a summary of the agency's efforts to reduce overall reporting requirements;

(19)iia list of each school district that is not in compliance with state special education requirements, including:

(A)iithe period for which the district has not been in compliance;

(B)iithe manner in which the agency considered the district's failure to comply in determining the district's accreditation status; and

(C)iian explanation of the actions taken by the commissioner to ensure compliance and an evaluation of the results of those actions;

(20)iia comparison of the performance of open-enrollment charter schools and school districts on the academic excellence indicators specified in Section 39.051(b) and accountability measures adopted under Section 39.051(g), with a separately aggregated comparison of the performance of open-enrollment charter schools predominantly serving students at risk of dropping out of school, as defined by Section 29.081(d), with the performance of school districts;

(21)iia summary of the information required by Section 38.0141 regarding student health and physical activity from each school district; [and]

(22)iia summary compilation of overall student performance under the assessment system developed to evaluate the longitudinal academic progress as required by Section 39.027(e), disaggregated by bilingual education or special language program instructional model, if any; and

(23)iiany additional information considered important by the commissioner or the State Board of Education.

(b)iiIn reporting the information required by Subsection (a)(3) or (4), the agency may separately aggregate the performance data of students enrolled in a special education program under Subchapter A, Chapter 29[, or a bilingual education or special language program under Subchapter B, Chapter 29].

(b-1)iiIn reporting the information required by Subsections (a)(3), (5), and (7), the agency shall separately aggregate the longitudinal performance data of all students identified as students of limited English proficiency, as defined by Section 29.052, or former students of limited English proficiency, disaggregated by bilingual education or special language program instructional model, if any, in which the students are or were enrolled.

SECTIONi7.iiSubsection (c), Section 42.006, Education Code, is amended to read as follows:

(c)iiAnnually, the commissioner shall review the Public Education Information Management System and shall repeal or amend rules that require school districts to provide information through the Public Education Information Management System that is not necessary. In reviewing and revising the Public Education Information Management System, the commissioner shall develop rules to ensure that the system:

Saturday, May 26, 2007 SENATE JOURNAL 4863


(1)iiprovides useful, accurate, and timely information on student demographics and academic performance, personnel, and school district finances;

(2)iicontains only the data necessary for the legislature and the agency to perform their legally authorized functions in overseeing the public education system; and

(3)iidoes not contain any information related to instructional methods, except as provided by Section 29.066 or required by federal law.

SECTIONi8.iiThe changes in law made by this Act apply beginning with the 2008-2009 school year.

SECTIONi9.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

The Conference Committee Report on SBi1871 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1137

Senator Zaffirini submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi1137 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

ZAFFIRINI HOCHBERG
WATSON BRANCH
ELTIFE EISSLER
HEGAR PATRICK
SHAPIRO
On the part of the Senate On the part of the House

The Conference Committee Report on HBi1137 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1111

Senator Uresti submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

4864 80th Legislature — Regular Session 68th Day


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi1111 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

URESTI TURNER
DEUELL BOLTON
HEGAR DUTTON
HINOJOSA MADDEN
On the part of the Senate On the part of the House

The Conference Committee Report on HBi1111 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2383

Senator Lucio submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2383 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

LUCIO LUCIO
HEGAR STRAMA
SHAPIRO CREIGHTON
VANiDEiPUTTE HANCOCK
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2383 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 10

Senator Nelson submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Saturday, May 26, 2007 SENATE JOURNAL 4865


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi10 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

NELSON DELISI
DEUELL J. DAVIS
JANEK HOPSON
LUCIO ISETT
URESTI TAYLOR
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to the operation and financing of the medical assistance program and other programs to provide health care benefits and services to persons in this state; providing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubchapter B, Chapter 531, Government Code, is amended by adding Section 531.02192 to read as follows:

Sec.i531.02192.iiFEDERALLY QUALIFIED HEALTH CENTER AND RURAL HEALTH CLINIC SERVICES. (a)iiIn this section:

(1)ii"Federally qualified health center" has the meaning assigned by 42 U.S.C. Section 1396d(l)(2)(B).

(2)ii"Federally qualified health center services" has the meaning assigned by 42 U.S.C. Section 1396d(l)(2)(A).

(3)ii"Rural health clinic" and "rural health clinic services" have the meanings assigned by 42 U.S.C. Section 1396d(l)(1).

(b)iiNotwithstanding any provision of this chapter, Chapter 32, Human Resources Code, or any other law, the commission shall:

(1)iipromote Medicaid recipient access to federally qualified health center services or rural health clinic services; and

(2)iiensure that payment for federally qualified health center services or rural health clinic services is in accordance with 42 U.S.C. Section 1396a(bb).

SECTIONi2.iiSubchapter B, Chapter 531, Government Code, is amended by adding Section 531.02413 to read as follows:

Sec.i531.02413.iiBILLING COORDINATION SYSTEM. (a)iiIf cost-effective and feasible, the commission shall, on or before March 1, 2008, contract through an existing procurement process for the implementation of an acute care Medicaid billing coordination system for the fee-for-service and primary care case management delivery models that will, upon entry in the claims system, identify within 24 hours whether another entity has primary responsibility for paying the claim and submit the claim to the entity the system determines is the primary payor. The system may not increase Medicaid claims payment error rates.

4866 80th Legislature — Regular Session 68th Day


(b)iiIf cost-effective, the executive commissioner shall adopt rules for the purpose of enabling the system to identify an entity with primary responsibility for paying a claim and establish reporting requirements for any entity that may have a contractual responsibility to pay for the types of acute care services provided under the Medicaid program.

(c)iiAn entity that holds a permit, license, or certificate of authority issued by a regulatory agency of the state must allow the contractor under Subsection (a) access to databases to allow the contractor to carry out the purposes of this section, subject to the contractor's contract with the commission and rules adopted under this section, and is subject to an administrative penalty or other sanction as provided by the law applicable to the permit, license, or certificate of authority for a violation by the entity of a rule adopted under this section.

(d)iiAfter September 1, 2008, no public funds shall be expended on entities not in compliance with this section unless a memorandum of understanding is entered into between the entity and the executive commissioner.

(e)iiInformation obtained under this section is confidential. The contractor may use the information only for the purposes authorized under this section. A person commits an offense if the person knowingly uses information obtained under this section for any purpose not authorized under this section. An offense under this subsection is a Class B misdemeanor and all other penalties may apply.

SECTIONi3.ii(a) Subchapter B, Chapter 531, Government Code, is amended by adding Section 531.02414 to read as follows:

Sec.i531.02414.iiADMINISTRATION AND OPERATION OF MEDICAL TRANSPORTATION PROGRAM. (a)iiIn this section, "medical transportation program" means the program that provides nonemergency transportation services to and from covered health care services, based on medical necessity, to recipients under the Medicaid program, the children with special health care needs program, and the transportation for indigent cancer patients program, who have no other means of transportation.

(b)iiNotwithstanding any other law, the commission shall directly supervise the administration and operation of the medical transportation program.

(c)iiNotwithstanding any other law, the commission may not delegate the commission's duty to supervise the medical transportation program to any other person, including through a contract with the Texas Department of Transportation for the department to assume any of the commission's responsibilities relating to the provision of services through that program.

(d)iiThe commission may contract with a public transportation provider, as defined by Section 461.002, Transportation Code, a private transportation provider, or a regional transportation broker for the provision of public transportation services, as defined by Section 461.002, Transportation Code, under the medical transportation program.

(b)iiSubchapter A, Chapter 531, Government Code, is amended by adding Section 531.0057 to read as follows:

Sec.i531.0057.iiMEDICAL TRANSPORTATION SERVICES. (a)iiThe commission shall provide medical transportation services for clients of eligible health and human services programs.

Saturday, May 26, 2007 SENATE JOURNAL 4867


(b)iiThe commission may contract with any public or private transportation provider or with any regional transportation broker for the provision of public transportation services.

SECTIONi4.ii(a)iiSubchapter B, Chapter 531, Government Code, is amended by adding Sections 531.094, 531.0941, 531.097, and 531.0971 to read as follows:

Sec.i531.094.iiPILOT PROGRAM AND OTHER PROGRAMS TO PROMOTE HEALTHY LIFESTYLES. (a)iiThe commission shall develop and implement a pilot program in one region of this state under which Medicaid recipients are provided positive incentives to lead healthy lifestyles, including through participating in certain health-related programs or engaging in certain health-conscious behaviors, thereby resulting in better health outcomes for those recipients.

(b)iiExcept as provided by Subsection (c), in implementing the pilot program, the commission may provide:

(1)iiexpanded health care benefits or value-added services for Medicaid recipients who participate in certain programs, such as specified weight loss or smoking cessation programs;

(2)iiindividual health rewards accounts that allow Medicaid recipients who follow certain disease management protocols to receive credits in the accounts that may be exchanged for health-related items specified by the commission that are not covered by Medicaid; and

(3)iiany other positive incentive the commission determines would promote healthy lifestyles and improve health outcomes for Medicaid recipients.

(c)iiThe commission shall consider similar incentive programs implemented in other states to determine the most cost-effective measures to implement in the pilot program under this section.

(d)iiNot later than December 1, 2010, the commission shall submit a report to the legislature that:

(1)iidescribes the operation of the pilot program;

(2)iianalyzes the effect of the incentives provided under the pilot program on the health of program participants; and

(3)iimakes recommendations regarding the continuation or expansion of the pilot program.

(e)iiIn addition to developing and implementing the pilot program under this section, the commission may, if feasible and cost-effective, develop and implement an additional incentive program to encourage Medicaid recipients who are younger than 21 years of age to make timely health care visits under the early and periodic screening, diagnosis, and treatment program. The commission shall provide incentives under the program for managed care organizations contracting with the commission under Chapter 533 and Medicaid providers to encourage those organizations and providers to support the delivery and documentation of timely and complete health care screenings under the early and periodic screening, diagnosis, and treatment program.

(f)iiThis section expires September 1, 2011.

4868 80th Legislature — Regular Session 68th Day


Sec.i531.0941.iiMEDICAID HEALTH SAVINGS ACCOUNT PILOT PROGRAM. (a)iiIf the commission determines that it is cost-effective and feasible, the commission shall develop and implement a Medicaid health savings account pilot program that is consistent with federal law to:

(1)iiencourage health care cost awareness and sensitivity by adult recipients; and

(2)iipromote appropriate utilization of Medicaid services by adult recipients.

(b)iiIf the commission implements the pilot program, the commission may only include adult recipients as participants in the program.

(c)iiIf the commission implements the pilot program, the commission shall ensure that:

(1)iiparticipation in the pilot program is voluntary; and

(2)iia recipient who participates in the pilot program may, at the recipient's option and subject to Subsection (d), discontinue participation in the program and resume receiving benefits and services under the traditional Medicaid delivery model.

(d)iiA recipient who chooses to discontinue participation in the pilot program and resume receiving benefits and services under the traditional Medicaid delivery model before completion of the health savings account enrollment period forfeits any funds remaining in the recipient's health savings account.

Sec.i531.097.iiTAILORED BENEFIT PACKAGES FOR CERTAIN CATEGORIES OF THE MEDICAID POPULATION. (a)iiThe executive commissioner may seek a waiver under Section 1115 of the federal Social Security Act (42 U.S.C. Section 1315) to develop and, subject to Subsection (c), implement tailored benefit packages designed to:

(1)iiprovide Medicaid benefits that are customized to meet the health care needs of recipients within defined categories of the Medicaid population through a defined system of care;

(2)iiimprove health outcomes for those recipients;

(3)iiimprove those recipients' access to services;

(4)iiachieve cost containment and efficiency; and

(5)iireduce the administrative complexity of delivering Medicaid benefits.

(b)iiThe commission:

(1)iishall develop a tailored benefit package that is customized to meet the health care needs of Medicaid recipients who are children with special health care needs, subject to approval of the waiver described by Subsection (a); and

(2)iimay develop tailored benefit packages that are customized to meet the health care needs of other categories of Medicaid recipients.

(c)iiIf the commission develops tailored benefit packages under Subsection (b)(2), the commission shall submit a report to the standing committees of the senate and house of representatives having primary jurisdiction over the Medicaid program that specifies, in detail, the categories of Medicaid recipients to which each of those packages will apply and the services available under each package. The commission may not implement a package developed under Subsection (b)(2) before September 1, 2009.

Saturday, May 26, 2007 SENATE JOURNAL 4869


(d)iiExcept as otherwise provided by this section and subject to the terms of the waiver authorized by this section, the commission has broad discretion to develop the tailored benefit packages under this section and determine the respective categories of Medicaid recipients to which the packages apply in a manner that preserves recipients' access to necessary services and is consistent with federal requirements.

(e)iiEach tailored benefit package developed under this section must include:

(1)iia basic set of benefits that are provided under all tailored benefit packages; and

(2)iito the extent applicable to the category of Medicaid recipients to which the package applies:

(A)iia set of benefits customized to meet the health care needs of recipients in that category; and

(B)iiservices to integrate the management of a recipient's acute and long-term care needs, to the extent feasible.

(f)iiIn addition to the benefits required by Subsection (e), a tailored benefit package developed under this section that applies to Medicaid recipients who are children must provide at least the services required by federal law under the early and periodic screening, diagnosis, and treatment program.

(g)iiA tailored benefit package developed under this section may include any service available under the state Medicaid plan or under any federal Medicaid waiver, including any preventive health or wellness service.

(g-1)iiA tailored benefit package developed under this section must increase the state's flexibility with respect to the state's use of Medicaid funding and may not reduce the benefits available under the Medicaid state plan to any Medicaid recipient population.

(h)iiIn developing the tailored benefit packages, the commission shall consider similar benefit packages established in other states as a guide.

(i)iiThe executive commissioner, by rule, shall define each category of recipients to which a tailored benefit package applies and a mechanism for appropriately placing recipients in specific categories. Recipient categories must include children with special health care needs and may include:

(1)iipersons with disabilities or special health needs;

(2)iielderly persons;

(3)iichildren without special health care needs; and

(4)iiworking-age parents and caretaker relatives.

(j)iiThis section does not apply to a tailored benefit package or similar package of benefits if, before September 1, 2007:

(1)iia federal waiver was requested to implement the package of benefits;

(2)iithe package of benefits is being developed, as directed by the legislature; or

(3)iithe package of benefits has been implemented.

Sec.i531.0971.iiTAILORED BENEFIT PACKAGES FOR NON-MEDICAID POPULATIONS. (a)iiThe commission shall identify state or federal non-Medicaid programs that provide health care services to persons whose health care needs could be met by providing customized benefits through a system of care that is used under a Medicaid tailored benefit package implemented under Section 531.097.

4870 80th Legislature — Regular Session 68th Day


(b)iiIf the commission determines that it is feasible and to the extent permitted by federal and state law, the commission shall:

(1)iiprovide the health care services for persons identified under Subsection (a) through the applicable Medicaid tailored benefit package; and

(2)iiif appropriate or necessary to provide the services as required by Subdivision (1), develop and implement a system of blended funding methodologies to provide the services in that manner.

(b)iiNot later than September 1, 2008, the Health and Human Services Commission shall implement the pilot program under Section 531.094, Government Code, as added by this section.

SECTIONi5.iiSubchapter B, Chapter 531, Government Code, is amended by adding Section 531.0972 to read as follows:

Sec.i531.0972.iiPILOT PROGRAM TO PREVENT THE SPREAD OF CERTAIN INFECTIOUS OR COMMUNICABLE DISEASES. The commission may provide guidance to the local health authority of Bexar County in establishing a pilot program funded by the county to prevent the spread of HIV, hepatitis B, hepatitis C, and other infectious and communicable diseases. The program may include a disease control program that provides for the anonymous exchange of used hypodermic needles and syringes.

SECTIONi6.ii(a)iiSubchapter C, Chapter 531, Government Code, is amended by adding Section 531.1112 to read as follows:

Sec.i531.1112.iiSTUDY CONCERNING INCREASED USE OF TECHNOLOGY TO STRENGTHEN FRAUD DETECTION AND DETERRENCE; IMPLEMENTATION. (a)iiThe commission and the commission's office of inspector general shall jointly study the feasibility of increasing the use of technology to strengthen the detection and deterrence of fraud in the state Medicaid program. The study must include the determination of the feasibility of using technology to verify a person's citizenship and eligibility for coverage.

(b)iiThe commission shall implement any methods the commission and the commission's office of inspector general determine are effective at strengthening fraud detection and deterrence.

(b)iiNot later than December 1, 2008, the Health and Human Services Commission shall submit to the legislature a report detailing the findings of the study required by Section 531.1112, Government Code, as added by this section. The report must include a description of any method described by Subsection (b), Section 531.1112, Government Code, as added by this section, that the commission has implemented or intends to implement.

SECTIONi7.ii(a)iiChapter 531, Government Code, is amended by adding Subchapter N to read as follows:

SUBCHAPTER N. TEXAS HEALTH OPPORTUNITY POOL TRUST FUND

Sec.i531.501.iiDEFINITION. In this subchapter, "fund" means the Texas health opportunity pool trust fund established under Section 531.503.

Sec.i531.502.iiDIRECTION TO OBTAIN FEDERAL WAIVER. (a)iiThe executive commissioner may seek a waiver under Section 1115 of the federal Social Security Act (42 U.S.C. Section 1315) to the state Medicaid plan to allow the commission to more efficiently and effectively use federal money paid to this state

Saturday, May 26, 2007 SENATE JOURNAL 4871


under various programs to defray costs associated with providing uncompensated health care in this state by using that federal money, appropriated state money to the extent necessary, and any other money described by this section for purposes consistent with this subchapter.

(b)iiThe executive commissioner may include the following federal money in the waiver:

(1)iiall money provided under the disproportionate share hospitals and upper payment limit supplemental payment programs;

(2)iimoney provided by the federal government in lieu of some or all of the payments under those programs;

(3)iiany combination of funds authorized to be pooled by Subdivisions (1) and (2); and

(4)iiany other money available for that purpose, including federal money and money identified under Subsection (c).

(c)iiThe commission shall seek to optimize federal funding by:

(1)iiidentifying health care related state and local funds and program expenditures that, before September 1, 2007, are not being matched with federal money; and

(2)iiexploring the feasibility of:

(A)iicertifying or otherwise using those funds and expenditures as state expenditures for which this state may receive federal matching money; and

(B)iidepositing federal matching money received as provided by Paragraph (A) with other federal money deposited as provided by Section 531.504, or substituting that federal matching money for federal money that otherwise would be received under the disproportionate share hospitals and upper payment limit supplemental payment programs as a match for local funds received by this state through intergovernmental transfers.

(d)iiThe terms of a waiver approved under this section must:

(1)iiinclude safeguards to ensure that the total amount of federal money provided under the disproportionate share hospitals and upper payment limit supplemental payment programs that is deposited as provided by Section 531.504 is, for a particular state fiscal year, at least equal to the greater of the annualized amount provided to this state under those supplemental payment programs during state fiscal year 2007, excluding amounts provided during that state fiscal year that are retroactive payments, or the state fiscal years during which the waiver is in effect; and

(2)iiallow for the development by this state of a methodology for allocating money in the fund to:

(A)iioffset, in part, the uncompensated health care costs incurred by hospitals;

(B)iireduce the number of persons in this state who do not have health benefits coverage; and

(C)iimaintain and enhance the community public health infrastructure provided by hospitals.

(e)iiIn a waiver under this section, the executive commissioner shall seek to:

(1)iiobtain maximum flexibility with respect to using the money in the fund for purposes consistent with this subchapter;

4872 80th Legislature — Regular Session 68th Day


(2)iiinclude an annual adjustment to the aggregate caps under the upper payment limit supplemental payment program to account for inflation, population growth, and other appropriate demographic factors that affect the ability of residents of this state to obtain health benefits coverage;

(3)iiensure, for the term of the waiver, that the aggregate caps under the upper payment limit supplemental payment program for each of the three classes of hospitals are not less than the aggregate caps that applied during state fiscal year 2007; and

(4)iito the extent allowed by federal law, including federal regulations, and federal waiver authority, preserve the federal supplemental payment program payments made to hospitals, the state match with respect to which is funded by intergovernmental transfers or certified public expenditures that are used to optimize Medicaid payments to safety net providers for uncompensated care, and preserve allocation methods for those payments, unless the need for the payments is revised through measures that reduce the Medicaid shortfall or uncompensated care costs.

(f)iiThe executive commissioner shall seek broad-based stakeholder input in the development of the waiver under this section and shall provide information to stakeholders regarding the terms and components of the waiver for which the executive commissioner seeks federal approval.

(g)iiThe executive commissioner shall seek the advice of the Legislative Budget Board before finalizing the terms and conditions of the negotiated waiver.

Sec.i531.503.iiESTABLISHMENT OF TEXAS HEALTH OPPORTUNITY POOL TRUST FUND. Subject to approval of the waiver authorized by Section 531.502, the Texas health opportunity pool trust fund is created as a trust fund outside the state treasury to be held by the comptroller and administered by the commission as trustee on behalf of residents of this state who do not have private health benefits coverage and health care providers providing uncompensated care to those persons. The commission may make expenditures of money in the fund only for purposes consistent with this subchapter and the terms of the waiver authorized by Section 531.502.

Sec.i531.504.iiDEPOSITS TO FUND. (a)iiThe comptroller shall deposit in the fund:

(1)iiall federal money provided to this state under the disproportionate share hospitals supplemental payment program and the hospital upper payment limit supplemental payment program, other than money provided under those programs to state-owned and operated hospitals, and all other non-supplemental payment program federal money provided to this state that is included in the waiver authorized by Section 531.502; and

(2)iistate money appropriated to the fund.

(b)iiThe commission and comptroller may accept gifts, grants, and donations from any source for purposes consistent with this subchapter and the terms of the waiver. The comptroller shall deposit a gift, grant, or donation made for those purposes in the fund.

Sec.i531.505.iiUSE OF FUND IN GENERAL; RULES FOR ALLOCATION. (a)iiExcept as otherwise provided by the terms of a waiver authorized by Section 531.502, money in the fund may be used:

Saturday, May 26, 2007 SENATE JOURNAL 4873


(1)iisubject to Section 531.506, to provide reimbursements to health care providers that:

(A)iiare based on the providers' costs related to providing uncompensated care; and

(B)iicompensate the providers for at least a portion of those costs;

(2)iito reduce the number of persons in this state who do not have health benefits coverage;

(3)iito reduce the need for uncompensated health care provided by hospitals in this state; and

(4)iifor any other purpose specified by this subchapter or the waiver.

(b)iiOn approval of the waiver, the executive commissioner shall:

(1)iiseek input from a broad base of stakeholder representatives on the development of rules with respect to, and the administration of, the fund; and

(2)iiby rule develop a methodology for allocating money in the fund that is consistent with the terms of the waiver.

Sec.i531.506.iiREIMBURSEMENTS FOR UNCOMPENSATED HEALTH CARE COSTS. (a)iiExcept as otherwise provided by the terms of a waiver authorized by Section 531.502 and subject to Subsections (b) and (c), money in the fund may be allocated to hospitals in this state and political subdivisions of this state to defray the costs of providing uncompensated health care in this state.

(b)iiTo be eligible for money from the fund under this section, a hospital or political subdivision must use a portion of the money to implement strategies that will reduce the need for uncompensated inpatient and outpatient care, including care provided in a hospital emergency room. Strategies that may be implemented by a hospital or political subdivision, as applicable, include:

(1)iifostering improved access for patients to primary care systems or other programs that offer those patients medical homes, including the following programs:

(A)iiregional or local health care programs;

(B)iiprograms to provide premium subsidies for health benefits coverage; and

(C)iiother programs to increase access to health benefits coverage; and

(2)iicreating health care systems efficiencies, such as using electronic medical records systems.

(c)iiThe allocation methodology adopted by the executive commissioner under Section 531.505(b) must specify the percentage of the money from the fund allocated to a hospital or political subdivision that the hospital or political subdivision must use for strategies described by Subsection (b).

Sec.i531.507.iiINCREASING ACCESS TO HEALTH BENEFITS COVERAGE. (a)iiExcept as otherwise provided by the terms of a waiver authorized by Section 531.502, money in the fund that is available to reduce the number of persons in this state who do not have health benefits coverage or to reduce the need for uncompensated health care provided by hospitals in this state may be used for purposes relating to increasing access to health benefits coverage for low-income persons, including:

(1)iiproviding premium payment assistance to those persons through a premium payment assistance program developed under this section;

4874 80th Legislature — Regular Session 68th Day


(2)iimaking contributions to health savings accounts for those persons; and

(3)iiproviding other financial assistance to those persons through alternate mechanisms established by hospitals in this state or political subdivisions of this state that meet certain criteria, as specified by the commission.

(b)iiThe commission and the Texas Department of Insurance shall jointly develop a premium payment assistance program designed to assist persons described by Subsection (a) in obtaining and maintaining health benefits coverage. The program may provide assistance in the form of payments for all or part of the premiums for that coverage. In developing the program, the executive commissioner shall adopt rules establishing:

(1)iieligibility criteria for the program;

(2)iithe amount of premium payment assistance that will be provided under the program;

(3)iithe process by which that assistance will be paid; and

(4)iithe mechanism for measuring and reporting the number of persons who obtained health insurance or other health benefits coverage as a result of the program.

(c)iiThe commission shall implement the premium payment assistance program developed under Subsection (b), subject to availability of money in the fund for that purpose.

Sec.i531.508.iiINFRASTRUCTURE IMPROVEMENTS. (a)iiExcept as otherwise provided by the terms of a waiver authorized by Section 531.502 and subject to Subsection (c), money in the fund may be used for purposes related to developing and implementing initiatives to improve the infrastructure of local provider networks that provide services to Medicaid recipients and low-income uninsured persons in this state.

(b)iiInfrastructure improvements under this section may include developing and implementing a system for maintaining medical records in an electronic format.

(c)iiNot more than 10 percent of the total amount of the money in the fund used in a state fiscal year for purposes other than providing reimbursements to hospitals for uncompensated health care may be used for infrastructure improvements described by Subsection (b).

(b)iiIf the executive commissioner of the Health and Human Services Commission obtains federal approval for a waiver under Section 531.502, Government Code, as added by this section, the executive commissioner shall submit a report to the Legislative Budget Board that outlines the components and terms of that waiver as soon as possible after federal approval is granted.

SECTIONi8.ii(a)iiChapter 531, Government Code, is amended by adding Subchapter O to read as follows:

SUBCHAPTER O. UNCOMPENSATED HOSPITAL CARE

Sec.i531.551.iiUNCOMPENSATED HOSPITAL CARE REPORTING AND ANALYSIS. (a)iiThe executive commissioner shall adopt rules providing for:

(1)iia standard definition of "uncompensated hospital care";

(2)iia methodology to be used by hospitals in this state to compute the cost of that care that incorporates the standard set of adjustments described by Section 531.552(g)(4); and

Saturday, May 26, 2007 SENATE JOURNAL 4875


(3)iiprocedures to be used by those hospitals to report the cost of that care to the commission and to analyze that cost.

(b)iiThe rules adopted by the executive commissioner under Subsection (a)(3) may provide for procedures by which the commission may periodically verify the completeness and accuracy of the information reported by hospitals.

(c)iiThe commission shall notify the attorney general of a hospital's failure to report the cost of uncompensated care on or before the date the report was due in accordance with rules adopted under Subsection (a)(3). On receipt of the notice, the attorney general shall impose an administrative penalty on the hospital in the amount of $1,000 for each day after the date the report was due that the hospital has not submitted the report, not to exceed $10,000.

(d)iiIf the commission determines through the procedures adopted under Subsection (b) that a hospital submitted a report with incomplete or inaccurate information, the commission shall notify the hospital of the specific information the hospital must submit and prescribe a date by which the hospital must provide that information. If the hospital fails to submit the specified information on or before the date prescribed by the commission, the commission shall notify the attorney general of that failure. On receipt of the notice, the attorney general shall impose an administrative penalty on the hospital in an amount not to exceed $10,000. In determining the amount of the penalty to be imposed, the attorney general shall consider:

(1)iithe seriousness of the violation;

(2)iiwhether the hospital had previously committed a violation; and

(3)iithe amount necessary to deter the hospital from committing future violations.

(e)iiA report by the commission to the attorney general under Subsection (c) or (d) must state the facts on which the commission based its determination that the hospital failed to submit a report or failed to completely and accurately report information, as applicable.

(f)iiThe attorney general shall give written notice of the commission's report to the hospital alleged to have failed to comply with a requirement. The notice must include a brief summary of the alleged violation, a statement of the amount of the administrative penalty to be imposed, and a statement of the hospital's right to a hearing on the alleged violation, the amount of the penalty, or both.

(g)iiNot later than the 20th day after the date the notice is sent under Subsection (f), the hospital must make a written request for a hearing or remit the amount of the administrative penalty to the attorney general. Failure to timely request a hearing or remit the amount of the administrative penalty results in a waiver of the right to a hearing under this section. If the hospital timely requests a hearing, the attorney general shall conduct the hearing in accordance with Chapter 2001, Government Code. If the hearing results in a finding that a violation has occurred, the attorney general shall:

(1)iiprovide to the hospital written notice of:

(A)iithe findings established at the hearing; and

(B)iithe amount of the penalty; and

(2)iienter an order requiring the hospital to pay the amount of the penalty.

4876 80th Legislature — Regular Session 68th Day


(h)iiNot later than the 30th day after the date the hospital receives the order entered by the attorney general under Subsection (g), the hospital shall:

(1)iipay the amount of the administrative penalty;

(2)iiremit the amount of the penalty to the attorney general for deposit in an escrow account and file a petition for judicial review contesting the occurrence of the violation, the amount of the penalty, or both; or

(3)iiwithout paying the amount of the penalty, file a petition for judicial review contesting the occurrence of the violation, the amount of the penalty, or both and file with the court a sworn affidavit stating that the hospital is financially unable to pay the amount of the penalty.

(i)iiThe attorney general's order is subject to judicial review as a contested case under Chapter 2001, Government Code.

(j)iiIf the hospital paid the penalty and on review the court does not sustain the occurrence of the violation or finds that the amount of the administrative penalty should be reduced, the attorney general shall remit the appropriate amount to the hospital not later than the 30th day after the date the court's judgment becomes final.

(k)iiIf the court sustains the occurrence of the violation:

(1)iithe court:

(A)iishall order the hospital to pay the amount of the administrative penalty; and

(B)iimay award to the attorney general the attorney's fees and court costs incurred by the attorney general in defending the action; and

(2)iithe attorney general shall remit the amount of the penalty to the comptroller for deposit in the general revenue fund.

(l)iiIf the hospital does not pay the amount of the administrative penalty after the attorney general's order becomes final for all purposes, the attorney general may enforce the penalty as provided by law for legal judgments.

Sec.i531.552.iiWORK GROUP ON UNCOMPENSATED HOSPITAL CARE. (a)iiIn this section, "work group" means the work group on uncompensated hospital care.

(b)iiThe executive commissioner shall establish the work group on uncompensated hospital care to assist the executive commissioner in developing rules required by Section 531.551 by performing the functions described by Subsection (g).

(c)iiThe executive commissioner shall determine the number of members of the work group. The executive commissioner shall ensure that the work group includes representatives from the office of the attorney general and the hospital industry. A member of the work group serves at the will of the executive commissioner.

(d)iiThe executive commissioner shall designate a member of the work group to serve as presiding officer. The members of the work group shall elect any other necessary officers.

(e)iiThe work group shall meet at the call of the executive commissioner.

(f)iiA member of the work group may not receive compensation for serving on the work group but is entitled to reimbursement for travel expenses incurred by the member while conducting the business of the work group as provided by the General Appropriations Act.

(g)iiThe work group shall study and advise the executive commissioner in:

Saturday, May 26, 2007 SENATE JOURNAL 4877


(1)iiidentifying the number of different reports required to be submitted to the state that address uncompensated hospital care, care for low-income uninsured persons in this state, or both;

(2)iistandardizing the definitions used to determine uncompensated hospital care for purposes of those reports;

(3)iiimproving the tracking of hospital charges, costs, and adjustments as those charges, costs, and adjustments relate to identifying uncompensated hospital care and maintaining a hospital's tax-exempt status;

(4)iideveloping and applying a standard set of adjustments to a hospital's initial computation of the cost of uncompensated hospital care that account for all funding streams that:

(A)iiare not patient-specific; and

(B)iiare used to offset the hospital's initially computed amount of uncompensated care;

(5)iideveloping a standard and comprehensive center for data analysis and reporting with respect to uncompensated hospital care; and

(6)iianalyzing the effect of the standardization of the definition of uncompensated hospital care and the computation of its cost, as determined in accordance with the rules adopted by the executive commissioner, on the laws of this state, and analyzing potential legislation to incorporate the changes made by the standardization.

(b)iiThe executive commissioner of the Health and Human Services Commission shall:

(1)iiestablish the work group on uncompensated hospital care required by Section 531.552, Government Code, as added by this section, not later than Octoberi1, 2007; and

(2)iiadopt the rules required by Section 531.551, Government Code, as added by this section, not later than January 1, 2009.

(c)iiThe executive commissioner of the Health and Human Services Commission shall review the methodology used under the Medicaid disproportionate share hospitals supplemental payment program to compute low-income utilization costs to ensure that the Medicaid disproportionate share methodology is consistent with the standardized adjustments to uncompensated care costs described by Subdivision (4), Subsection (g), Section 531.552, Government Code, as added by this section, and adopted by the executive commissioner.

SECTIONi9.iiChapter 531, Government Code, is amended by adding Subchapter P to read as follows:

SUBCHAPTER P. PHYSICIAN-CENTERED NURSING FACILITY MODEL DEMONSTRATION PROJECT

Sec.i531.601.iiDEFINITIONS. In this subchapter:

(1)ii"Nursing facility" has the meaning assigned by Section 242.301, Health and Safety Code.

(2)ii"Project" means the physician-centered nursing facility model demonstration project implemented under this subchapter.

4878 80th Legislature — Regular Session 68th Day


Sec.i531.602.iiPHYSICIAN-CENTERED NURSING FACILITY MODEL DEMONSTRATION PROJECT. (a)iiThe commission may develop and implement a demonstration project to determine whether paying an enhanced Medicaid reimbursement rate to a nursing facility that provides continuous, on-site oversight of residents by physicians specializing in geriatric medicine results in:

(1)iiimproved overall health of residents of that facility; and

(2)iicost savings resulting from a reduction of acute care hospitalization and pharmaceutical costs.

(b)iiIn developing the project, the commission may consider similar physician-centered nursing facility models implemented in other states to determine the most cost-effective measures to implement in the project under this subchapter.

(c)iiThe commission may consider whether the project could involve the Medicare program, subject to federal law and approval.

Sec.i531.603.iiREPORT. (a)iiIf the commission develops and implements the project, the commission shall, not later than December 1, 2008, submit a preliminary status report to the governor, the lieutenant governor, the speaker of the house of representatives, and the chairs of the standing committees of the senate and house of representatives having primary jurisdiction over the Medicaid program. The report must:

(1)iidescribe the project, including the implementation and performance of the project during the preceding year; and

(2)iievaluate the operation of the project.

(b)iiIf the commission develops and implements the project, the commission shall submit a subsequent report to the persons listed in Subsection (a) preceding the regular session of the 82nd Legislature. The report must make recommendations regarding:

(1)iithe continuation or expansion of the project, to be determined based on the cost-effectiveness of the project; and

(2)iiif the commission recommends expanding the project, any necessary statutory or budgetary changes.

Sec.i531.604.iiEXPIRATION. This subchapter expires September 1, 2011.

SECTIONi10.iiSubchapter A, Chapter 533, Government Code, is amended by adding Section 533.0051 to read as follows:

Sec.i533.0051.iiPERFORMANCE MEASURES AND INCENTIVES FOR VALUE-BASED CONTRACTS. (a)iiThe commission shall establish outcome-based performance measures and incentives to include in each contract between a health maintenance organization and the commission for the provision of health care services to recipients that is procured and managed under a value-based purchasing model. The performance measures and incentives must be designed to facilitate and increase recipients' access to appropriate health care services.

(b)iiSubject to Subsection (c), the commission shall include the performance measures and incentives established under Subsection (a) in each contract described by that subsection in addition to all other contract provisions required by this chapter.

(c)iiThe commission may use a graduated approach to including the performance measures and incentives established under Subsection (a) in contracts described by that subsection to ensure incremental and continued improvements over time.

Saturday, May 26, 2007 SENATE JOURNAL 4879


(d)iiSubject to Subsection (f), the commission shall assess the feasibility and cost-effectiveness of including provisions in a contract described by Subsection (a) that require the health maintenance organization to provide to the providers in the organization's provider network pay-for-performance opportunities that support quality improvements in the care of Medicaid recipients. Pay-for-performance opportunities may include incentives for providers to provide care after normal business hours and to participate in the early and periodic screening, diagnosis, and treatment program and other activities that improve Medicaid recipients' access to care. If the commission determines that the provisions are feasible and may be cost-effective, the commission shall develop and implement a pilot program in at least one health care service region under which the commission will include the provisions in contracts with health maintenance organizations offering managed care plans in the region.

(e)iiThe commission shall post the financial statistical report on the commission's web page in a comprehensive and understandable format.

(f)iiThe commission shall, to the extent possible, base an assessment of feasibility and cost-effectiveness under Subsection (d) on publicly available, scientifically valid, evidence-based criteria appropriate for assessing the Medicaid population.

(g)iiIn performing the commission's duties under Subsection (d) with respect to assessing feasibility and cost-effectiveness, the commission may consult with physicians, including those with expertise in quality improvement and performance measurement, and hospitals.

SECTIONi11.ii(a)iiSubsection (c), Section 533.012, Government Code, is amended to read as follows:

(c)iiThe commission's office of investigations and enforcement shall review the information submitted under this section as appropriate in the investigation of fraud in the Medicaid managed care program. [The comptroller may review the information in connection with the health care fraud study conducted by the comptroller.]

(b)iiSection 403.028, Government Code, is repealed.

SECTIONi12.ii(a)iiSubchapter A, Chapter 533, Government Code, is amended by adding Section 533.019 to read as follows:

Sec.i533.019.iiVALUE-ADDED SERVICES. The commission shall actively encourage managed care organizations that contract with the commission to offer benefits, including health care services or benefits or other types of services, that:

(1)iiare in addition to the services ordinarily covered by the managed care plan offered by the managed care organization; and

(2)iihave the potential to improve the health status of enrollees in the plan.

(b)iiThe changes in law made by Section 533.019, Government Code, as added by this section, apply to a contract between the Health and Human Services Commission and a managed care organization under Chapter 533, Government Code, that is entered into or renewed on or after the effective date of this section. The commission shall seek to amend contracts entered into with managed care organizations under that chapter before the effective date of this section to authorize those managed care organizations to offer value-added services to enrollees in accordance with Section 533.019, Government Code, as added by this section.

4880 80th Legislature — Regular Session 68th Day


SECTIONi13.ii(a)iiSubtitle C, Title 2, Health and Safety Code, is amended by adding Chapter 75 to read as follows:

CHAPTER 75. REGIONAL OR LOCAL HEALTH CARE PROGRAMS FOR EMPLOYEES OF SMALL EMPLOYERS

SUBCHAPTER A. GENERAL PROVISIONS

Sec.i75.001.iiPURPOSE. The purpose of this chapter is to:

(1)iiimprove the health of employees of small employers and their families by improving the employees' access to health care and by reducing the number of those employees who are uninsured;

(2)iireduce the likelihood that those employees and their families will require services from state-funded entitlement programs such as Medicaid;

(3)iicontribute to economic development by helping small businesses remain competitive with a healthy workforce and health care benefits that will attract employees; and

(4)iiencourage innovative solutions for providing and funding health care services and benefits.

Sec.i75.002.iiDEFINITIONS. In this chapter:

(1)ii"Employee" means an individual employed by an employer. The term includes a partner of a partnership and the proprietor of a sole proprietorship.

(2)ii"Governing body" means:

(A)iithe commissioners courts of the counties participating in a regional health care program;

(B)iithe commissioners court of a county participating in a local health care program; or

(C)iithe governing body of the joint council, nonprofit entity exempt from federal taxation, or other entity that operates a regional or local health care program.

(3)ii"Local health care program" means a local health care program operating in one county and established for the benefit of the employees of small employers under Subchapter B.

(4)ii"Regional health care program" means a regional health care program operating in two or more counties and established for the benefit of the employees of small employers under Subchapter B.

(5)ii"Small employer" means a person who employed an average of at least two employees but not more than 50 employees on business days during the preceding calendar year and who employs at least two employees on the first day of the plan year.

[Sections 75.003-75.050 reserved for expansion]

SUBCHAPTER B. REGIONAL OR LOCAL HEALTH CARE PROGRAM

Sec.i75.051.iiESTABLISHMENT OF PROGRAM; MULTICOUNTY COOPERATION. (a)iiThe commissioners court of a county may, by order, establish or participate in a local health care program under this subchapter.

(b)iiThe commissioners courts of two or more counties may, by joint order, establish or participate in a regional health care program under this subchapter.

Saturday, May 26, 2007 SENATE JOURNAL 4881


Sec.i75.052.iiGOVERNANCE OF PROGRAM. (a)iiA regional health care program may be operated subject to the direct governance of the commissioners courts of the participating counties. A local health care program may be operated subject to the direct governance of the commissioners court of the participating county. A regional or local health care program may be operated by a joint council, tax-exempt nonprofit entity, or other entity that:

(1)iioperates the program under a contract with the commissioners court or courts, as applicable; or

(2)iiis an entity in which the county or counties participate or that is established or designated by the commissioners court or courts, as applicable, to operate the program.

(b)iiIn selecting an entity described by Subsection (a)(1) or (2) to operate a regional or local health care program, the commissioners court or courts, as applicable, shall require, to the extent possible, that the entity be authorized under federal law to accept donations on a basis that is tax-deductible or otherwise tax-advantaged for the contributor.

Sec.i75.053.iiOPERATION OF PROGRAM. A regional or local health care program provides health care services or benefits to the employees of participating small employers who are located within the boundaries of the participating county or counties, as applicable. A program may also provide services or benefits to the dependents of those employees.

Sec.i75.054.iiPARTICIPATION BY SMALL EMPLOYERS; SHARE OF COST. Subject to Section 75.153, the governing body may establish criteria for participation in a regional or local health care program by small employers, the employees of the small employers, and their dependents. The criteria must require that participating employers and participating employees pay a share of the premium or other cost of the program.

Sec.i75.055.iiADDITIONAL FUNDING. (a)iiA governing body may accept and use state money made available through an appropriation from the general revenue fund or a gift, grant, or donation from any source to operate the regional or local health care program and to provide services or benefits under the program.

(b)iiA governing body may apply for and receive funding from the health opportunity pool trust fund under Subchapter D.

(b-1)iiA governing body may apply for and receive a grant under Subchapter E to support a regional or local health care program if money is appropriated for that purpose. This subsection expires September 1, 2009.

(c)iiA governing body shall actively solicit gifts, grants, and donations to:

(1)iifund services and benefits provided under the regional or local health care program; and

(2)iireduce the cost of participation in the program for small employers and their employees.

4882 80th Legislature — Regular Session 68th Day


[Sections 75.056-75.100 reserved for expansion]

SUBCHAPTER C. HEALTH CARE SERVICES AND BENEFITS

Sec.i75.101.iiALTERNATIVE PROGRAMS AUTHORIZED; PROGRAM OBJECTIVES. In developing a regional or local health care program, a governing body may provide health care services or benefits as described by this subchapter or may develop another type of program to accomplish the purposes of this chapter. A regional or local health care program must be developed, to the extent practicable, to:

(1)iireduce the number of individuals without health benefit plan coverage within the boundaries of the participating county or counties;

(2)iiaddress rising health care costs and reduce the cost of health care services or health benefit plan coverage for small employers and their employees within the boundaries of the participating county or counties;

(3)iipromote preventive care and reduce the incidence of preventable health conditions, such as heart disease, cancer, and diabetes and low birth weight in infants;

(4)iipromote efficient and collaborative delivery of health care services;

(5)iiserve as a model for the innovative use of health information technology to promote efficient delivery of health care services, reduce health care costs, and improve the health of the community; and

(6)iiprovide fair payment rates for health care providers.

Sec.i75.102.iiHEALTH BENEFIT PLAN COVERAGE. (a)iiA regional or local health care program may provide health care benefits to the employees of small employers by purchasing or facilitating the purchase of health benefit plan coverage for those employees from a health benefit plan issuer, including coverage under:

(1)iia small employer health benefit plan offered under Chapter 1501, Insurance Code;

(2)iia standard health benefit plan offered under Chapter 1507, Insurance Code; or

(3)iiany other health benefit plan available in this state.

(b)iiThe governing body may form one or more cooperatives under Subchapter B, Chapter 1501, Insurance Code.

(c)iiNotwithstanding Chapter 1251, Insurance Code, an insurer may issue a group accident and health insurance policy, including a group contract issued by a group hospital service corporation, to cover the employees of small employers participating in a regional or local health care program. The group policyholder of a policy issued in accordance with this subsection is the governing body or the designee of the governing body.

(d)iiA health maintenance organization may issue a health care plan to cover the employees of small employers participating in a regional or local health care program. The group contract holder of a contract issued in accordance with this subsection is the governing body or the designee of the governing body.

Sec.i75.103.iiOTHER HEALTH BENEFIT PLANS OR PROGRAMS. To the extent authorized by federal law, the governing body may establish or facilitate the establishment of self-funded health benefit plans or may facilitate the provision of health benefit coverage through health savings accounts and high-deductible health plans.

Saturday, May 26, 2007 SENATE JOURNAL 4883


Sec.i75.104.iiHEALTH CARE SERVICES. (a)iiA regional or local health care program may contract with health care providers within the boundaries of the participating county or counties to provide health care services directly to the employees of participating small employers and the dependents of those employees.

(b)iiA regional or local health care program shall allow any individual who receives state premium assistance to buy into the health benefit plan offered by the regional or local health care program.

(c)iiA governing body that operates a regional or local health care program under this section may require that participating employees and dependents obtain health care services only from health care providers that contract to provide those services under the program and may limit the health care services provided under the program to services provided within the boundaries of the participating county or counties.

(d)iiA governing body operating a regional or local health care program operated under this section is not an insurer or health maintenance organization and the program is not subject to regulation by the Texas Department of Insurance.

[Sections 75.105-75.150 reserved for expansion]

SUBCHAPTER D. TEXAS HEALTH OPPORTUNITY POOL FUNDS

Sec.i75.151.iiDEFINITION. In this subchapter, "health opportunity pool trust fund" means the trust fund established under Subchapter N, Chapter 531, Government Code.

Sec.i75.152.iiFUNDING AUTHORIZED. Notwithstanding any other law, a regional or local health care program may apply for funding from the health opportunity pool trust fund and the fund may provide funding in accordance with this subchapter.

Sec.i75.153.iiELIGIBILITY FOR FUNDS; STATEWIDE ELIGIBILITY CRITERIA. To be eligible for funding from money in the health opportunity pool trust fund, a regional or local health care program must:

(1)iicomply with any requirement imposed under the waiver obtained under Section 531.502, Government Code, including, to the extent applicable, any requirement that health care benefits or services provided under the program be provided in accordance with statewide eligibility criteria; and

(2)iiprovide health care benefits or services under the program to a person receiving premium payment assistance for health benefits coverage through a program established under Section 531.507, Government Code, regardless of whether the person is an employee, or dependent of an employee, of a small employer.

[Sections 75.154-75.200 reserved for expansion]

SUBCHAPTER E. GRANTS FOR DEMONSTRATION PROJECTS

Sec.i75.201.iiDEFINITIONS. In this subchapter:

(1)ii"Commission" means the Health and Human Services Commission.

(2)ii"Executive commissioner" means the executive commissioner of the commission.

Sec.i75.202.iiGRANT PROGRAM. (a)iiThe executive commissioner may establish a grant program to support the initial establishment and operation of one or more regional or local health care programs as demonstration projects, subject to the appropriation of money for this purpose.

4884 80th Legislature — Regular Session 68th Day


(b)iiIn selecting grant recipients, the executive commissioner shall consider the extent to which the regional or local health care program proposed by the applicant accomplishes the purposes of this chapter and meets the objectives established under Section 75.101.

(c)iiThe commission shall establish performance objectives for a grant recipient and shall monitor the performance of the grant recipient.

Sec.i75.203.iiREVIEW OF DEMONSTRATION PROJECT; REPORT. Not later than December 1, 2008, the commission shall complete a review of each regional or local health care program that receives a grant under this subchapter and shall submit to the governor, the lieutenant governor, and the speaker of the house of representatives a report that includes:

(1)iian evaluation of the success of regional and local health care programs in accomplishing the purposes of this chapter; and

(2)iithe commission's recommendations for any legislation needed to facilitate or improve regional and local health care programs.

Sec.i75.204.iiEXPIRATION. This subchapter expires September 1, 2009.

(b)iiThe heading to Subtitle C, Title 2, Health and Safety Code, is amended to read as follows:

SUBTITLE C. PROGRAMS PROVIDING [INDIGENT] HEALTH CARE BENEFITS AND SERVICES

SECTIONi14.ii(a)iiSubsection (a), Section 773.004, Health and Safety Code, is amended to read as follows:

(a)iiThis chapter does not apply to:

(1)ii[a ground transfer vehicle and staff used to transport a patient who is under a physician's care between medical facilities or between a medical facility and a private residence, unless it is medically necessary to transport the patient using a stretcher;

[(2)]iiair transfer that does not advertise as an ambulance service and that is not licensed by the department;

(2)i[(3)]iithe use of ground or air transfer vehicles to transport sick or injured persons in a casualty situation that exceeds the basic vehicular capacity or capability of emergency medical services providers in the area;

(3)i[(4)]iian industrial ambulance; or

(4)i[(5)]iia physician, registered nurse, or other health care practitioner licensed by this state unless the health care practitioner staffs an emergency medical services vehicle regularly.

(b)iiSection 773.041, Health and Safety Code, is amended by adding Subsection (a-1) to read as follows:

(a-1)iiA person may not transport a patient by stretcher in a vehicle unless the person holds a license as an emergency medical services provider issued by the department in accordance with this chapter. For purposes of this subsection, "person" means an individual, corporation, organization, government, governmental subdivision or agency, business, trust, partnership, association, or any other legal entity.

Saturday, May 26, 2007 SENATE JOURNAL 4885


(c)iiNot later than May 1, 2008, the executive commissioner of the Health and Human Services Commission shall adopt the rules necessary to implement the changes in law made by this section to Chapter 773, Health and Safety Code.

SECTIONi15.iiSubchapter B, Chapter 32, Human Resources Code, is amended by adding Section 32.0214 to read as follows:

Sec.i32.0214.iiDESIGNATIONS OF PRIMARY CARE PROVIDER BY CERTAIN RECIPIENTS. (a)iiIf the department determines that it is cost-effective and feasible and subject to Subsection (b), the department shall require each recipient of medical assistance to designate a primary care provider with whom the recipient will have a continuous, ongoing professional relationship and who will provide and coordinate the recipient's initial and primary care, maintain the continuity of care provided to the recipient, and initiate any referrals to other health care providers.

(b)iiA recipient who receives medical assistance through a Medicaid managed care model or arrangement under Chapter 533, Government Code, that requires the designation of a primary care provider shall designate the recipient's primary care provider as required by that model or arrangement.

SECTIONi16.iiSection 32.024, Human Resources Code, is amended by adding Subsection (y-1) to read as follows:

(y-1)iiA woman who receives a breast or cervical cancer screening service under Title XV of the Public Health Service Act (42 U.S.C. Section 300k et seq.) and who otherwise meets the eligibility requirements for medical assistance for treatment of breast or cervical cancer as provided by Subsection (y) is eligible for medical assistance under that subsection, regardless of whether federal Medicaid matching funds are available for that medical assistance. A screening service of a type that is within the scope of screening services under that title is considered to be provided under that title regardless of whether the service was provided by a provider who receives or uses funds under that title.

SECTIONi17.iiSubchapter B, Chapter 32, Human Resources Code, is amended by adding Section 32.02471 to read as follows:

Sec.i32.02471.iiMEDICAL ASSISTANCE FOR CERTAIN FORMER FOSTER CARE ADOLESCENTS ENROLLED IN HIGHER EDUCATION. (a)iiIn this section, "independent foster care adolescent" has the meaning assigned by Section 32.0247.

(b)iiThe department shall provide medical assistance to a person who:

(1)iiis 21 years of age or older but younger than 23 years of age;

(2)iiwould be eligible to receive assistance as an independent foster care adolescent under Section 32.0247 if the person were younger than 21 years of age; and

(3)iiis enrolled in an institution of higher education, as defined by Section 61.003(8), Education Code, or a private or independent institution of higher education, as defined by Section 61.003(15), Education Code, that is located in this state and is making satisfactory academic progress as determined by the institution.

SECTIONi18.iiSection 32.0422, Human Resources Code, is amended to read as follows:

4886 80th Legislature — Regular Session 68th Day


Sec.i32.0422.iiHEALTH INSURANCE PREMIUM PAYMENT REIMBURSEMENT PROGRAM FOR MEDICAL ASSISTANCE RECIPIENTS. (a)iiIn this section:

(1)ii"Commission" ["Department"] means the Health and Human Services Commission [Texas Department of Health].

(2)ii"Executive commissioner" means the executive commissioner of the Health and Human Services Commission.

(3)ii"Group health benefit plan" means a plan described by Section 1207.001, Insurance Code.

(b)iiThe commission [department] shall identify individuals, otherwise entitled to medical assistance, who are eligible to enroll in a group health benefit plan. The commission [department] must include individuals eligible for or receiving health care services under a Medicaid managed care delivery system.

(b-1)iiTo assist the commission in identifying individuals described by Subsection (b):

(1)iithe commission shall include on an application for medical assistance and on a form for recertification of a recipient's eligibility for medical assistance:

(A)iian inquiry regarding whether the applicant or recipient, as applicable, is eligible to enroll in a group health benefit plan; and

(B)iia statement informing the applicant or recipient, as applicable, that reimbursements for required premiums and cost-sharing obligations under the group health benefit plan may be available to the applicant or recipient; and

(2)iinot later than the 15th day of each month, the office of the attorney general shall provide to the commission the name, address, and social security number of each newly hired employee reported to the state directory of new hires operated under Chapter 234, Family Code, during the previous calendar month.

(c)iiThe commission [department] shall require an individual requesting medical assistance or a recipient, during the recipient's eligibility recertification review, to provide information as necessary relating to any [the availability of a] group health benefit plan that is available to the individual or recipient through an employer of the individual or recipient or an employer of the individual's or recipient's spouse or parent to assist the commission in making the determination required by Subsection (d).

(d)iiFor an individual identified under Subsection (b), the commission [department] shall determine whether it is cost-effective to enroll the individual in the group health benefit plan under this section.

(e)iiIf the commission [department] determines that it is cost-effective to enroll the individual in the group health benefit plan, the commission [department] shall:

(1)iirequire the individual to apply to enroll in the group health benefit plan as a condition for eligibility under the medical assistance program; and

(2)iiprovide written notice to the issuer of the group health benefit plan in accordance with Chapter 1207, Insurance Code.

(e-1)iiThis subsection applies only to an individual who is identified under Subsection (b) as being eligible to enroll in a group health benefit plan offered by an employer. If the commission determines under Subsection (d) that enrolling the individual in the group health benefit plan is not cost-effective, but the individual

Saturday, May 26, 2007 SENATE JOURNAL 4887


prefers to enroll in that plan instead of receiving benefits and services under the medical assistance program, the commission, if authorized by a waiver obtained under federal law, shall:

(1)iiallow the individual to voluntarily opt out of receiving services through the medical assistance program and enroll in the group health benefit plan;

(2)iiconsider that individual to be a recipient of medical assistance; and

(3)iiprovide written notice to the issuer of the group health benefit plan in accordance with Chapter 1207, Insurance Code.

(f)iiExcept as provided by Subsection (f-1), the commission [The department] shall provide for payment of:

(1)iithe employee's share of required premiums for coverage of an individual enrolled in the group health benefit plan; and

(2)iiany deductible, copayment, coinsurance, or other cost-sharing obligation imposed on the enrolled individual for an item or service otherwise covered under the medical assistance program.

(f-1)iiFor an individual described by Subsection (e-1) who enrolls in a group health benefit plan, the commission shall provide for payment of the employee's share of the required premiums, except that if the employee's share of the required premiums exceeds the total estimated Medicaid costs for the individual, as determined by the executive commissioner, the individual shall pay the difference between the required premiums and those estimated costs. The individual shall also pay all deductibles, copayments, coinsurance, and other cost-sharing obligations imposed on the individual under the group health benefit plan.

(g)iiA payment made by the commission [department] under Subsection (f) or (f-1) is considered to be a payment for medical assistance.

(h)iiA payment of a premium for an individual who is a member of the family of an individual enrolled in a group health benefit plan under Subsection (e) [this section] and who is not eligible for medical assistance is considered to be a payment for medical assistance for an eligible individual if:

(1)iienrollment of the family members who are eligible for medical assistance is not possible under the plan without also enrolling members who are not eligible; and

(2)iithe commission [department] determines it to be cost-effective.

(i)iiA payment of any deductible, copayment, coinsurance, or other cost-sharing obligation of a family member who is enrolled in a group health benefit plan in accordance with Subsection (h) and who is not eligible for medical assistance:

(1)iimay not be paid under this chapter; and

(2)iiis not considered to be a payment for medical assistance for an eligible individual.

(i-1)iiThe commission shall make every effort to expedite payments made under this section, including by ensuring that those payments are made through electronic transfers of money to the recipient's account at a financial institution, if possible. In lieu of reimbursing the individual enrolled in the group health benefit plan for required premium or cost-sharing payments made by the individual, the commission may, if feasible:

4888 80th Legislature — Regular Session 68th Day


(1)iimake payments under this section for required premiums directly to the employer providing the group health benefit plan in which an individual is enrolled; or

(2)iimake payments under this section for required premiums and cost-sharing obligations directly to the group health benefit plan issuer.

(j)iiThe commission [department] shall treat coverage under the group health benefit plan as a third party liability to the program. Subject to Subsection (j-1), enrollment [Enrollment] of an individual in a group health benefit plan under this section does not affect the individual's eligibility for medical assistance benefits, except that the state is entitled to payment under Sections 32.033 and 32.038.

(j-1)iiAn individual described by Subsection (e-1) who enrolls in a group health benefit plan is not ineligible for community-based services provided under a Section 1915(c) waiver program or another federal waiver program solely based on the individual's enrollment in the group health benefit plan, and the individual may receive those services if the individual is otherwise eligible for the program. The individual is otherwise limited to the health benefits coverage provided under the health benefit plan in which the individual is enrolled, and the individual may not receive any benefits or services under the medical assistance program other than the premium payment as provided by Subsection (f-1) and, if applicable, waiver program services described by this subsection.

(k)iiThe commission [department] may not require or permit an individual who is enrolled in a group health benefit plan under this section to participate in the Medicaid managed care program under Chapter 533, Government Code, or a Medicaid managed care demonstration project under Section 32.041.

(l)iiThe commission, in consultation with the Texas Department of Insurance, shall provide training to agents who hold a general life, accident, and health license under Chapter 4054, Insurance Code, regarding the health insurance premium payment reimbursement program and the eligibility requirements for participation in the program. Participation in a training program established under this subsection is voluntary, and a general life, accident, and health agent who successfully completes the training is entitled to receive continuing education credit under Subchapter B, Chapter 4004, Insurance Code, in accordance with rules adopted by the commissioner of insurance.

(m)iiThe commission may pay a referral fee, in an amount determined by the commission, to each general life, accident, and health agent who, after completion of the training program established under Subsection (l), successfully refers an eligible individual to the commission for enrollment in a [Texas Department of Human Services shall provide information and otherwise cooperate with the department as necessary to ensure the enrollment of eligible individuals in the] group health benefit plan under this section.

(n)iiThe commission shall develop procedures by which an individual described by Subsection (e-1) who enrolls in a group health benefit plan may, at the individual's option, resume receiving benefits and services under the medical assistance program instead of the group health benefit plan.

Saturday, May 26, 2007 SENATE JOURNAL 4889


(o)iiThe commission shall develop procedures which ensure that, prior to allowing an individual described by Subsection (e-1) to enroll in a group health benefit plan or allowing the parent or caretaker of an individual described by Subsection (e-1) under the age of 21 to enroll that child in a group health benefit plan:

(1)iithe individual must receive counseling informing them that for the period in which the individual is enrolled in the group health benefit plan:

(A)iithe individual shall be limited to the health benefits coverage provided under the health benefit plan in which the individual is enrolled;

(B)iithe individual may not receive any benefits or services under the medical assistance program other than the premium payment as provided by Subsection (f-1);

(C)iithe individual shall pay the difference between the required premiums and the premium payment as provided by Subsection (f-1) and shall also pay all deductibles, copayments, coinsurance, and other cost-sharing obligations imposed on the individual under the group health benefit plan; and

(D)iithe individual may, at the individual's option through procedures developed by the commission, resume receiving benefits and services under the medical assistance program instead of the group health benefit plan; and

(2)iithe individual must sign and the commission shall retain a copy of a waiver indicating the individual has provided informed consent.

(p)iiThe executive commissioner [department] shall adopt rules as necessary to implement this section.

SECTIONi19.ii(a)iiSection 32.058, Human Resources Code, is amended to read as follows:

Sec.i32.058.iiLIMITATION ON MEDICAL ASSISTANCE IN CERTAIN ALTERNATIVE COMMUNITY-BASED CARE SETTINGS. (a)iiIn this section, "medical assistance waiver program" means a program administered by the Department of Aging and Disability Services, other than the Texas home living program, that provides services under a waiver granted in accordance with 42 U.S.C. Section 1396n(c)[:

[(1)ii"Institution" means a nursing facility or an ICF-MR facility.

[(2)ii"Medical assistance waiver program" means:

[(A)iithe community-based alternatives program;

[(B)iithe community living assistance and support services program;

[(C)iithe deaf-blind/multiple disabilities program;

[(D)iithe consolidated waiver pilot program; or

[(E)iithe medically dependent children program].

(b)iiExcept as provided by Subsection (c), [or] (d), (e), or (f), the department may not provide services under a medical assistance waiver program to a person [receiving medical assistance] if the projected cost of providing those services over a 12-month period exceeds the individual cost limit specified in the medical assistance waiver program.

(c)iiThe department shall continue to provide services under a medical assistance waiver program to a person who was [is] receiving those services on September 1, 2005, at a cost that exceeded [exceeds] the individual cost limit specified in the medical assistance waiver program, if continuation of those services:

4890 80th Legislature — Regular Session 68th Day


(1)iiis necessary for the person to live in the most integrated setting appropriate to the needs of the person; and

(2)iidoes not affect the department's compliance with the federal average per capita expenditure requirement [cost-effectiveness and efficiency requirements] of the medical assistance waiver program under 42 U.S.C. Section [Sections 1396n(b) and] 1396n(c)(2)(D).

(d)iiThe department may continue to provide services under a medical assistance waiver program, other than the home and community-based services program, to a person who is ineligible to receive those services under Subsection (b) and to whom Subsection (c) does not apply if:

(1)iithe projected cost of providing those services to the person under the medical assistance waiver program over a 12-month period does not exceed 133.3 percent of the individual cost limit specified in the medical assistance waiver program; and

(2)iicontinuation of those services does not affect the department's compliance with the federal average per capita expenditure requirement [cost-effectiveness and efficiency requirements] of the medical assistance waiver program under 42 U.S.C. Section [Sections 1396n(b) and] 1396n(c)(2)(D).

(e)iiThe department may exempt a person from the cost limit established under Subsection (d)(1) for a medical assistance waiver program if the department determines that:

(1)iithe person's health and safety cannot be protected by the services provided within the cost limit established for the program under that subdivision; and

(2)iithere is no available living arrangement, other than one provided through the program or another medical assistance waiver program, in which the person's health and safety can be protected, as evidenced by:

(A)iian assessment conducted by clinical staff of the department; and

(B)iisupporting documentation, including the person's medical and service records.

(f)iiThe department may continue to provide services under the home and community-based services program to a person who is ineligible to receive those services under Subsection (b) and to whom Subsection (c) does not apply if the department makes, with regard to the person's receipt of services under the home and community-based services program, the same determinations required by Subsections (e)(1) and (2) in the same manner provided by Subsection (e) and determines that continuation of those services does not affect:

(1)iithe department's compliance with the federal average per capita expenditure requirement of the home and community-based services program under 42 U.S.C. Section 1396n(c)(2)(D); and

(2)iiany cost-effectiveness requirements provided by the General Appropriations Act that limit expenditures for the home and community-based services program.

(g)iiThe executive commissioner of the Health and Human Services Commission may adopt rules to implement Subsections (d), (e), and (f) [under which the department may exempt a person from the cost limit established under Subsection (d)(1)].

Saturday, May 26, 2007 SENATE JOURNAL 4891


(h)iiIf a federal agency determines that compliance with any provision in this section would make this state ineligible to receive federal funds to administer a program to which this section applies, a state agency may, but is not required to, implement that provision.

(b)iiThe changes in law made by this section apply only to a person receiving medical assistance on or after the effective date of this section, regardless of when eligibility for that assistance was determined.

SECTIONi20.iiSubchapter B, Chapter 32, Human Resources Code, is amended by adding Section 32.0641 to read as follows:

Sec.i32.0641.iiCOST SHARING FOR CERTAIN HIGH-COST MEDICAL SERVICES. (a)iiIf the department determines that it is feasible and cost-effective, and to the extent permitted under Title XIX, Social Security Act (42 U.S.C. Section 1396 et seq.) and any other applicable law or regulation or under a federal waiver or other authorization, the executive commissioner of the Health and Human Services Commission shall adopt cost-sharing provisions that require a recipient who chooses a high-cost medical service provided through a hospital emergency room to pay a copayment, premium payment, or other cost-sharing payment for the high-cost medical service if:

(1)iithe hospital from which the recipient seeks service:

(A)iiperforms an appropriate medical screening and determines that the recipient does not have a condition requiring emergency medical services;

(B)iiinforms the recipient:

(i)iithat the recipient does not have a condition requiring emergency medical services;

(ii)iithat, if the hospital provides the nonemergency service, the hospital may require payment of a copayment, premium payment, or other cost-sharing payment by the recipient in advance; and

(iii)iiof the name and address of a nonemergency Medicaid provider who can provide the appropriate medical service without imposing a cost-sharing payment; and

(C)iioffers to provide the recipient with a referral to the nonemergency provider to facilitate scheduling of the service; and

(2)iiafter receiving the information and assistance described by Subdivision (1) from the hospital, the recipient chooses to obtain emergency medical services despite having access to medically acceptable, lower-cost medical services.

(b)iiThe department may not seek a federal waiver or other authorization under Subsection (a) that would:

(1)iiprevent a Medicaid recipient who has a condition requiring emergency medical services from receiving care through a hospital emergency room; or

(2)iiwaive any provision under Section 1867, Social Security Act (42 U.S.C. Section 1395dd).

(c)iiIf the executive commissioner of the Health and Human Services Commission adopts a copayment or other cost-sharing payment under Subsection (a), the commission may not reduce hospital payments to reflect the potential receipt of a copayment or other payment from a recipient receiving medical services provided through a hospital emergency room.

4892 80th Legislature — Regular Session 68th Day


SECTIONi21.ii(a)iiSubchapter B, Chapter 32, Human Resources Code, is amended by adding Section 32.072 to read as follows:

Sec.i32.072.iiDIRECT ACCESS TO EYE HEALTH CARE SERVICES. (a)iiNotwithstanding any other law, a recipient of medical assistance is entitled to:

(1)iiselect an ophthalmologist or therapeutic optometrist who is a medical assistance provider to provide eye health care services, other than surgery, that are within the scope of:

(A)iiservices provided under the medical assistance program; and

(B)iithe professional specialty practice for which the ophthalmologist or therapeutic optometrist is licensed and credentialed; and

(2)iihave direct access to the selected ophthalmologist or therapeutic optometrist for the provision of the nonsurgical services without any requirement to obtain:

(A)iia referral from a primary care physician or other gatekeeper or health care coordinator; or

(B)iiany other prior authorization or precertification.

(b)iiThe department may require an ophthalmologist or therapeutic optometrist selected as provided by this section by a recipient of medical assistance who is otherwise required to have a primary care physician or other gatekeeper or health care coordinator to forward to the recipient's physician, gatekeeper, or health care coordinator information concerning the eye health care services provided to the recipient.

(c)iiThis section may not be construed to expand the scope of eye health care services provided under the medical assistance program.

(b)iiSubchapter A, Chapter 533, Government Code, is amended by adding Section 533.0026 to read as follows:

Sec.i533.0026.iiDIRECT ACCESS TO EYE HEALTH CARE SERVICES UNDER MEDICAID MANAGED CARE MODEL OR ARRANGEMENT. (a)iiNotwithstanding any other law, the commission shall ensure that a managed care plan offered by a managed care organization that contracts with the commission under this chapter and any other Medicaid managed care model or arrangement implemented under this chapter allow a Medicaid recipient who receives services through the plan or other model or arrangement to, in the manner and to the extent required by Section 32.072, Human Resources Code:

(1)iiselect an in-network ophthalmologist or therapeutic optometrist in the managed care network to provide eye health care services, other than surgery; and

(2)iihave direct access to the selected in-network ophthalmologist or therapeutic optometrist for the provision of the nonsurgical services.

(b)iiThis section does not affect the obligation of an ophthalmologist or therapeutic optometrist in a managed care network to comply with the terms and conditions of the managed care plan.

(c)iiThe changes in law made by Section 533.0026, Government Code, as added by this section, apply to a contract between the Health and Human Services Commission and a managed care organization under Chapter 533, Government Code, that is entered into or renewed on or after the effective date of this section.

Saturday, May 26, 2007 SENATE JOURNAL 4893


SECTIONi22.iiChapter 32, Human Resources Code, is amended by adding Subchapter C to read as follows:

SUBCHAPTER C. ELECTRONIC COMMUNICATIONS

Sec.i32.101.iiDEFINITIONS. In this subchapter:

(1)ii"Electronic health record" means electronically originated and maintained health and claims information regarding the health status of an individual that may be derived from multiple sources and includes the following core functionalities:

(A)iia patient health and claims information or data entry function to aid with medical diagnosis, nursing assessment, medication lists, allergy recognition, demographics, clinical narratives, and test results;

(B)iia results management function that may include computerized laboratory test results, diagnostic imaging reports, interventional radiology reports, and automated displays of past and present medical or laboratory test results;

(C)iia computerized physician order entry of medication, care orders, and ancillary services;

(D)iiclinical decision support that may include electronic reminders and prompts to improve prevention, diagnosis, and management; and

(E)iielectronic communication and connectivity that allows online communication:

(i)iiamong physicians and health care providers; and

(ii)iiamong the Health and Human Services Commission, the operating agencies, and participating providers.

(2)ii"Executive commissioner" means the executive commissioner of the Health and Human Services Commission.

(3)ii"Health care provider" means a person, other than a physician, who is licensed or otherwise authorized to provide a health care service in this state.

(4)ii"Health information technology" means information technology used to improve the quality, safety, or efficiency of clinical practice, including the core functionalities of an electronic health record, electronic medical record, computerized physician or health care provider order entry, electronic prescribing, and clinical decision support technology.

(5)ii"Operating agency" means a health and human services agency operating part of the medical assistance program.

(6)ii"Participating provider" means a physician or health care provider who is a provider of medical assistance, including a physician or health care provider who contracts or otherwise agrees with a managed care organization to provide medical assistance under this chapter.

(7)ii"Physician" means an individual licensed to practice medicine in this state under the authority of Subtitle B, Title 3, Occupations Code, or a person that is:

(A)iia professional association of physicians formed under the Texas Professional Association Law, as described by Section 1.008, Business Organizations Code;

(B)iian approved nonprofit health corporation certified under Chapter 162, Occupations Code, that employs or contracts with physicians to provide medical services;

4894 80th Legislature — Regular Session 68th Day


(C)iia medical and dental unit, as defined by Section 61.003, Education Code, a medical school, as defined by Section 61.501, Education Code, or a health science center described by Subchapter K, Chapter 74, Education Code, that employs or contracts with physicians to teach or provide medical services, or employs physicians and contracts with physicians in a practice plan; or

(D)iia person wholly owned by a person described by Paragraph (A), (B), or (C).

(8)ii"Recipient" means a recipient of medical assistance.

Sec.i32.102.iiELECTRONIC COMMUNICATIONS. (a)iiTo the extent allowed by federal law, the executive commissioner may adopt rules allowing the Health and Human Services Commission to permit, facilitate, and implement the use of health information technology for the medical assistance program to allow for electronic communication among the commission, the operating agencies, and participating providers for:

(1)iieligibility, enrollment, verification procedures, and prior authorization for health care services or procedures covered by the medical assistance program, as determined by the executive commissioner, including diagnostic imaging;

(2)iithe update of practice information by participating providers;

(3)iithe exchange of recipient health care information, including electronic prescribing and electronic health records;

(4)iiany document or information requested or required under the medical assistance program by the Health and Human Services Commission, the operating agencies, or participating providers; and

(5)iithe enhancement of clinical and drug information available through the vendor drug program to ensure a comprehensive electronic health record for recipients.

(b)iiIf the executive commissioner determines that a need exists for the use of health information technology in the medical assistance program and that the technology is cost-effective, the Health and Human Services Commission may, for the purposes prescribed by Subsection (a):

(1)iiacquire and implement the technology; or

(2)iievaluate the feasibility of developing and, if feasible, develop, the technology through the use or expansion of other systems or technologies the commission uses for other purposes, including:

(A)iithe technologies used in the pilot program implemented under Section 531.1063, Government Code; and

(B)iithe health passport developed under Section 266.006, Family Code.

(c)iiThe commission:

(1)iimust ensure that health information technology used under this section complies with the applicable requirements of the Health Insurance Portability and Accountability Act;

(2)iimay require the health information technology used under this section to include technology to extract and process claims and other information collected, stored, or accessed by the medical assistance program, program contractors,

Saturday, May 26, 2007 SENATE JOURNAL 4895


participating providers, and state agencies operating any part of the medical assistance program for the purpose of providing patient information at the location where the patient is receiving care;

(3)iimust ensure that a paper record or document is not required to be filed if the record or document is permitted or required to be filed or transmitted electronically by rule of the executive commissioner;

(4)iimay provide for incentives to participating providers to encourage their use of health information technology under this subchapter;

(5)iimay provide recipients with a method to access their own health information; and

(6)iimay present recipients with an option to decline having their health information maintained in an electronic format under this subchapter.

(d)iiThe executive commissioner shall consult with participating providers and other interested stakeholders in developing any proposed rules under this section. The executive commissioner shall request advice and information from those stakeholders concerning the proposed rules, including advice regarding the impact of and need for a proposed rule.

SECTIONi23.ii(a)iiChapter 32, Human Resources Code, is amended by adding Subchapter D to read as follows:

SUBCHAPTER D. ELECTRONIC HEALTH INFORMATION PILOT PROGRAM

Sec.i32.151.iiDEFINITIONS. In this subchapter:

(1)ii"Electronic health record" means an ambulatory electronic health record that is certified by the Certification Commission for Healthcare Information Technology or that meets other federally approved interoperability standards.

(2)ii"Executive commissioner" means the executive commissioner of the Health and Human Services Commission.

(3)ii"Health information technology" means information technology used to improve the quality, safety, and efficiency of clinical practice, including the core functionalities of an electronic health record, computerized physician order entry, electronic prescribing, and clinical decision support technology.

(4)ii"Provider" means:

(A)iian individual licensed to practice medicine in this state under Subtitle B, Title 3, Occupations Code;

(B)iia professional association of four or fewer physicians formed under the Texas Professional Association Law, as described by Section 1.008, Business Organizations Code; or

(C)iian advanced practice nurse licensed and authorized to practice under Subtitle E, Title 3, Occupations Code.

(5)ii"Recipient" means a recipient of medical assistance.

Sec.i32.152.iiELECTRONIC HEALTH INFORMATION PILOT PROGRAM. The executive commissioner, from money appropriated for this purpose, shall develop and implement a pilot program for providing health information technology, including electronic health records, for use by primary care providers who provide medical assistance to recipients.

Sec.i32.153.iiPROVIDER PARTICIPATION. For participation in the pilot program, the department shall select providers who:

4896 80th Legislature — Regular Session 68th Day


(1)iivolunteer to participate in the program;

(2)iiare providers of medical assistance, including providers who contract or otherwise agree with a managed care organization to provide medical assistance under this chapter; and

(3)iidemonstrate that at least 40 percent of the providers' practice involves the provision of primary care services to recipients in the medical assistance program.

Sec.i32.154.iiSECURITY OF PERSONALLY IDENTIFIABLE HEALTH INFORMATION. (a)iiPersonally identifiable health information of recipients enrolled in the pilot program must be maintained in an electronic format or technology that meets interoperability standards that are recognized by the Certification Commission for Healthcare Information Technology or other federally approved certification standards.

(b)iiThe system used to access a recipient's electronic health record must be secure and maintain the confidentiality of the recipient's personally identifiable health information in accordance with applicable state and federal law.

Sec.i32.155.iiGIFTS, GRANTS, AND DONATIONS. The department may request and accept gifts, grants, and donations from public or private entities for the implementation of the pilot program.

Sec.i32.156.iiPROTECTED HEALTH INFORMATION. To the extent that this subchapter authorizes the use or disclosure of protected health information by a covered entity, as those terms are defined by the privacy rule of the Administrative Simplification subtitle of the Health Insurance Portability and Accountability Act of 1996 (Pub. L. No. 104-191) contained in 45 C.F.R. Part 160 and 45 C.F.R. Part 164, Subparts A and E, the covered entity shall ensure that the use or disclosure complies with all applicable requirements, standards, or implementation specifications of the privacy rule.

Sec.i32.157.iiEXPIRATION OF SUBCHAPTER. This subchapter expires September 1, 2011.

(b)iiNot later than December 31, 2008, the executive commissioner of the Health and Human Services Commission shall submit to the governor, lieutenant governor, speaker of the house of representatives, presiding officer of the House Committee on Public Health, and presiding officer of the Senate Committee on Health and Human Services a report regarding the preliminary results of the pilot program established under Subchapter D, Chapter 32, Human Resources Code, as added by this section, and any recommendations regarding expansion of the pilot program, including any recommendations for legislation and requests for appropriation necessary for the expansion of the pilot program.

SECTIONi24.ii(a)iiSubsection (a), Section 1207.002, Insurance Code, is amended to read as follows:

(a)iiA group health benefit plan issuer shall permit an individual who is otherwise eligible for enrollment in the plan to enroll in the plan, without regard to any enrollment period restriction, on receipt of written notice from the Health and Human Services Commission [or a designee of the commission stating] that the individual is:

Saturday, May 26, 2007 SENATE JOURNAL 4897


(1)iia recipient of medical assistance under the state Medicaid program and is a participant in the health insurance premium payment reimbursement program under Section 32.0422, Human Resources Code; or

(2)iia child eligible for [enrolled in] the state child health plan under Chapter 62, Health and Safety Code, and eligible to participate [is a participant] in the health insurance premium assistance program under Section 62.059, Health and Safety Code.

(b)iiSection 1207.003, Insurance Code, is amended to read as follows:

Sec.i1207.003.iiEFFECTIVE DATE OF ENROLLMENT. (a) Unless enrollment occurs during an established enrollment period, enrollment in a group health benefit plan under Section 1207.002 takes effect on:

(1)iithe eligibility enrollment date specified in the written notice from the Health and Human Services Commission under Section 1207.002(a); or

(2)iithe first day of the first calendar month that begins at least 30 days after the date written notice or a written request is received by the plan issuer under Section 1207.002(a) or (b), as applicable.

(b)iiNotwithstanding Subsection (a), the individual must comply with a waiting period required under the state child health plan under Chapter 62, Health and Safety Code, or under the health insurance premium assistance program under Section 62.059, Health and Safety Code, as applicable.

(c)iiSubsection (b), Section 1207.004, Insurance Code, is amended to read as follows:

(b)iiNotwithstanding any other requirement of a group health benefit plan, the plan issuer shall permit an individual who is enrolled in the plan under Section 1207.002(a)(2), and any family member of the individual enrolled under Section 1207.002(c), to terminate enrollment in the plan not later than the 60th day after the date on which the individual provides a written request to disenroll from the plan because the individual [satisfactory proof to the issuer that the child is] no longer wishes to participate [a participant] in the health insurance premium assistance program under Section 62.059, Health and Safety Code.

SECTIONi25.iiSubtitle G, Title 8, Insurance Code, is amended by adding Chapter 1508 to read as follows:

CHAPTER 1508. HEALTHY TEXAS PROGRAM

Sec.i1508.001.iiSTUDY; REPORT. (a)iiThe commissioner shall conduct a study concerning a Healthy Texas Program, under which small employer health plan coverage would be offered through the program to persons who would be eligible for that coverage.

(b)iiThe study shall include a market analysis to assist in identification of underserved segments in the voluntary small employer group health benefit plan coverage market in this state.

(c)iiThe commissioner, using existing resources, may contract with actuaries and other experts as necessary to conduct the study.

4898 80th Legislature — Regular Session 68th Day


(d)iiNot later than November 1, 2008, the commissioner shall provide a report to the governor, the lieutenant governor, the speaker of the house of representatives, and the members of the legislature addressing the results of the study concerning the Healthy Texas Program. The report must include an analysis and information regarding:

(1)iithe advantages and disadvantages of the proposed program;

(2)iiprospective structure and function of the program and its components;

(3)iiprospective program design and administration, including fundamental operational procedures, powers and duties of the commissioner, and powers and duties of the program board of directors;

(4)iirecommendations for program eligibility criteria and minimum standards applicable to group health benefit plans that may be included in the program;

(5)iiidentification of other program requirements or restrictions and limitations necessary for successful implementation of the program;

(6)iithe potential economic impact that the program would have on the small employer insurance market in this state;

(7)iithe anticipated impact that the program would have on the quality of health care provided in this state; and

(8)iirecommendations for any statutory changes to address implementation of the program.

Sec.i1508.002.iiEXPIRATION. This chapter expires September 1, 2009.

SECTIONi26.ii(a)iiThe Texas Health Care Policy Council, in coordination with the Institute for Demographic and Socioeconomic Research at The University of Texas at San Antonio, the Regional Center for Health Workforce Studies at the Center for Health Economics and Policy of The University of Texas Health Science Center at San Antonio, and the Texas Medical Board, shall conduct a study regarding increasing:

(1)iithe number of medical residency programs and medical residents in this state; and

(2)iithe number of physicians practicing medical specialties.

(b)iiThe study must:

(1)iiexamine the feasibility of using a percentage of physician licensing fees to increase the number of medical residency programs and medical residents in this state;

(2)iiput emphasis on, and recommend a plan of action for, increasing the number of:

(A)iimedical residency programs and medical residents in medically underserved areas of this state; and

(B)iiphysicians practicing medical specialties that are underrepresented in this state; and

(3)iidetermine the number of medical residents that obtain a license to practice medicine in this state on completion of a medical residency program in this state.

(c)iiNot later than December 1, 2008, the Texas Health Care Policy Council shall:

Saturday, May 26, 2007 SENATE JOURNAL 4899


(1)iireport the results of the study to the governor, the lieutenant governor, and the speaker of the house of representatives; and

(2)iimake available the raw data from the study to the governor, the lieutenant governor, the speaker of the house of representatives, the House Committee on Public Health, and the Senate Committee on Health and Human Services.

(d)iiThe Texas Health Care Policy Council may accept gifts, grants, and donations of any kind from any source for the purposes of this section.

(e)iiThis section expires January 1, 2009.

SECTIONi27.ii(a)iiIn this section, "committee" means the committee on health and long-term care insurance incentives.

(b)iiThe committee on health and long-term care insurance incentives is established to study and develop recommendations regarding methods by which this state may reduce:

(1)iithe need for residents of this state to rely on the Medicaid program by providing incentives for employers to provide health insurance, long-term care insurance, or both, to their employees; and

(2)iithe number of individuals in the state who are not covered by health insurance or long-term care insurance.

(c)iiThe committee on health and long-term care insurance incentives is composed of:

(1)iithe presiding officers of:

(A)iithe Senate Committee on Health and Human Services;

(B)iithe House Committee on Public Health;

(C)iithe Senate Committee on State Affairs; and

(D)iithe House Committee on Insurance;

(2)iithree public members, appointed by the governor, who collectively represent the diversity of businesses in this state, including diversity with respect to:

(A)iithe geographic regions in which those businesses are located;

(B)iithe types of industries in which those businesses are engaged; and

(C)iithe sizes of those businesses, as determined by number of employees; and

(3)iithe following ex officio members:

(A)iithe comptroller of public accounts;

(B)iithe commissioner of insurance; and

(C)iithe executive commissioner of the Health and Human Services Commission.

(d)iiThe committee shall elect a presiding officer from the committee members and shall meet at the call of the presiding officer.

(e)iiThe committee shall study and develop recommendations regarding incentives this state may provide to employers to encourage those employers to provide health insurance, long-term care insurance, or both, to employees who would otherwise rely on the Medicaid program to meet their health and long-term care needs. In conducting the study, the committee shall:

(1)iiexamine the feasibility and determine the cost of providing incentives through:

4900 80th Legislature — Regular Session 68th Day


(A)iithe franchise tax under Chapter 171, Tax Code, including allowing exclusions from an employer's total revenue of insurance premiums paid for employees, regardless of whether the employer chooses under Subparagraph (ii), Paragraph (B), Subdivision (1), Subsection (a), Section 171.101, Tax Code, as effective January 1, 2008, to subtract cost of goods sold or compensation for purposes of determining the employer's taxable margin;

(B)iideductions from or refunds of other taxes imposed on the employer; and

(C)iiany other means, as determined by the committee; and

(2)iifor each incentive the committee examines under Subdivision (1) of this subsection, determine the impact that implementing the incentive would have on reducing the number of individuals in this state who do not have private health or long-term care insurance coverage, including individuals who are Medicaid recipients.

(e-1)iThe committee shall:

(1)iistudy and develop recommendations regarding:

(A)iithe cost of health care coverage under health benefit plans and how to reduce the cost of coverage through the following or other methods:

(i)iichanges in health benefit plan design or scope of services covered;

(ii)iiimprovements in disease management and other utilization review practices by health care providers and health benefit plans;

(iii)iireductions in administrative costs incurred by health care providers and health benefit plans;

(iv)iiimprovements in the use of health care information technology by health care providers and health benefit plans; and

(v)iidevelopment of a reinsurance system for health care claims in excess of $50,000; and

(B)iithe availability of health care coverage under health benefit plans and how to expand health care coverage through the following or other methods:

(i)iithe providing of premium subsidies for health benefit plan coverage by the state or local political subdivisions, including three-share or multiple-share programs;

(ii)iithe inclusion of individuals or employees of private employers under state or local political subdivision health benefit plans, including the Texas Health Insurance Risk Pool;

(iii)iiinclusion of family members and dependents under a group health benefit plan regardless of age; and

(iv)iirequiring vendors of state and local political subdivisions to provide health benefit plan coverage for their employees and the employee's family and dependents; and

(2)iiprovide information obtained in studying the issues under Subdivision (1) of this subsection to the Health and Human Services Commission and the Texas Department of Insurance for purposes of developing a health benefits coverage premium payment assistance program under Section 531.507, Government Code, as added by this Act.

Saturday, May 26, 2007 SENATE JOURNAL 4901


(f)iiNot later than September 1, 2008, the committee shall submit to the Senate Committee on Health and Human Services, the House Committee on Public Health, the Senate Committee on State Affairs, and the House Committee on Insurance a report regarding the results of the study required by this section. The report must include a detailed description of each incentive the committee examined and determined is feasible and, for each of those incentives, specify:

(1)iithe anticipated cost associated with providing that incentive;

(2)iiany statutory changes needed to implement the incentive; and

(3)iithe impact that implementing the incentive would have on reducing:

(A)iithe number of individuals in this state who do not have private health or long-term care insurance coverage; and

(B)iithe number of individuals in this state who are Medicaid recipients.

SECTIONi28.ii(a)iiThe Health and Human Services Commission shall conduct a study regarding the feasibility and cost-effectiveness of developing and implementing an integrated Medicaid managed care model designed to improve the management of care provided to Medicaid recipients who are aging, blind, or disabled or have chronic health care needs and are not enrolled in a managed care plan offered under a capitated Medicaid managed care model, including recipients who reside in:

(1)iirural areas of this state; or

(2)iiurban or surrounding areas in which the Medicaid Star + Plus program or another capitated Medicaid managed care model is not available.

(b)iiNot later than September 1, 2008, the Health and Human Services Commission shall submit a report regarding the results of the study to the standing committees of the senate and house of representatives having primary jurisdiction over the Medicaid program.

SECTIONi29.ii(a)iiIn this section:

(1)ii"Child health plan program" means the state child health plan program authorized by Chapter 62, Health and Safety Code.

(2)ii"Medicaid" means the medical assistance program provided under Chapter 32, Human Resources Code.

(b)iiThe Health and Human Services Commission shall conduct a study of the feasibility of providing a health passport for:

(1)iichildren under 19 years of age who are receiving Medicaid and are not provided a health passport under another law of this state; and

(2)iichildren enrolled in the child health plan program.

(c)iiThe feasibility study must:

(1)iiexamine the cost-effectiveness of the use of a health passport in conjunction with the coordination of health care services under each program;

(2)iiidentify any barriers to the implementation of the health passport developed for each program and recommend strategies for the removal of those barriers;

(3)iiexamine whether the use of a health passport will improve the quality of care for children described in Subsection (b) of this section; and

(4)iidetermine the fiscal impact to this state of the proposed initiative.

4902 80th Legislature — Regular Session 68th Day


(d)iiNot later than January 1, 2009, the Health and Human Services Commission shall submit to the governor, lieutenant governor, speaker of the house of representatives, and presiding officers of each standing committee of the legislature with jurisdiction over the commission a written report containing the findings of the study and the commission's recommendations.

(e)iiThis section expires September 1, 2009.

SECTIONi30.ii(a)iiThe Medicaid Reform Legislative Oversight Committee is created to facilitate the reform efforts in Medicaid, the process of addressing the issues of uncompensated hospital care, and the establishment of programs addressing the uninsured.

(b)iiThe committee is composed of eight members, as follows:

(1)iifour members of the senate, appointed by the lieutenant governor not later than October 1, 2007; and

(2)iifour members of the house of representatives, appointed by the speaker of the house of representatives not later than October 1, 2007.

(c)iiA member of the committee serves at the pleasure of the appointing official.

(d)iiThe lieutenant governor shall designate a member of the committee as the presiding officer.

(e)iiA member of the committee may not receive compensation for serving on the committee but is entitled to reimbursement for travel expenses incurred by the member while conducting the business of the committee as provided by the General Appropriations Act.

(f)iiThe committee shall:

(1)iifacilitate the design and development of any Medicaid waivers needed to affect reform as directed by this Act;

(2)iifacilitate a smooth transition from existing Medicaid payment systems and benefit designs to the new model of Medicaid enabled by waiver or policy change by the Health and Human Services Commission;

(3)iimeet at the call of the presiding officer; and

(4)iiresearch, take public testimony, and issue reports requested by the lieutenant governor or speaker of the house of representatives.

(g)iiThe committee may:

(1)iirequest reports and other information from the Health and Human Services Commission; and

(2)iireview the findings of the work group on uncompensated hospital care established under Section 531.552, Government Code, as added by this Act.

(h)iiThe committee shall use existing staff of the senate, the house of representatives, and the Texas Legislative Council to assist the committee in performing its duties under this section.

(i)iiChapter 551, Government Code, applies to the committee.

(j)iiThe committee shall report to the lieutenant governor and speaker of the house of representatives not later than November 15, 2008. The report must include:

(1)iiidentification of significant issues that impede the transition to a more effective Medicaid program;

(2)iithe measures of effectiveness associated with changes to the Medicaid program;

Saturday, May 26, 2007 SENATE JOURNAL 4903


(3)iithe impact of Medicaid changes on safety net hospitals and other significant traditional providers; and

(4)iithe impact on the uninsured in Texas.

(k)iiThis section expires September 1, 2009, and the committee is abolished on that date.

(l)iiThis section takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for this section to have immediate effect, this section takes effect September 1, 2007.

SECTIONi31.ii(a)iiIn this section:

(1)ii"Commission" means the Health and Human Services Commission.

(2)ii"Department" means the Texas Department of Insurance.

(b)iiThe department and the commission shall jointly study a small employer premium assistance program to provide financial assistance for the purchase of small employer health benefit plans by small employers.

(c)iiThe study conducted under this section must address:

(1)iioptions for program funding, including use of money in the Texas health opportunity pool trust fund as described by Section 531.507, Government Code, as added by this Act;

(2)iicoordination with any other premium assistance effort operated, under development, or under consideration by either agency; and

(3)iirecommended program design, including:

(A)iithe manner of targeting small employers;

(B)iiprovisions to discourage employers and others from electing to discontinue other private coverage for employees;

(C)iia minimum premium, or percentage of premium, that a small employer must pay for each eligible employee's coverage;

(D)iieligibility requirements for enrollees for whom financial assistance is provided to individuals;

(E)iiallocation of opportunities for enrollment in the program;

(F)iithe duration of enrollment in the program and requirements for renewal; and

(G)iiverification that small employers participating in the program use premium assistance to purchase and maintain a small employer health benefit plan.

(d)iiIn conducting the study, the department and the commission may consider programs and efforts undertaken by other states to provide premium assistance to small employers.

(e)iiNot later than November 1, 2008, the department and the commission shall jointly submit a report to the legislature. The report must summarize the results of the study conducted under this section and the recommendations of the department and commission and may include recommendations for proposed legislation to implement a small employer premium assistance program as described by Subsection (b) of this section.

SECTIONi32.ii(a)iiSubject to the appropriation of funds for these purposes and Subsection (c) of this section, all powers, duties, functions, activities, obligations, rights, contracts, records, assets, personal property, personnel, and appropriations or

4904 80th Legislature — Regular Session 68th Day


other money of the Texas Department of Transportation that are essential to the administration of the medical transportation program, as specified in Section 531.0057, Government Code, as added by this Act, are transferred to the Health and Human Services Commission.

(b)iiA reference in law or an administrative rule to the Texas Department of Transportation that relates to the medical transportation program means the Health and Human Services Commission.

(c)iiThe Texas Department of Transportation shall take all action necessary to provide for the transfer of its contractual obligations to administer the medical transportation program, as specified in Section 531.0057, Government Code, as added by this Act, to the Health and Human Services Commission as soon as possible after the effective date of this section but not later than September 1, 2008.

(d)iiEffective September 1, 2008, Subsection (a), Section 461.012, Health and Safety Code, is amended to read as follows:

(a)iiThe commission shall:

(1)iiprovide for research and study of the problems of chemical dependency in this state and seek to focus public attention on those problems through public information and education programs;

(2)iiplan, develop, coordinate, evaluate, and implement constructive methods and programs for the prevention, intervention, treatment, and rehabilitation of chemical dependency in cooperation with federal and state agencies, local governments, organizations, and persons, and provide technical assistance, funds, and consultation services for statewide and community-based services;

(3)iicooperate with and enlist the assistance of:

(A)iiother state, federal, and local agencies;

(B)iihospitals and clinics;

(C)iipublic health, welfare, and criminal justice system authorities;

(D)iieducational and medical agencies and organizations; and

(E)iiother related public and private groups and persons;

(4)iiexpand chemical dependency services for children when funds are available because of the long-term benefits of those services to the state and its citizens;

(5)iisponsor, promote, and conduct educational programs on the prevention and treatment of chemical dependency, and maintain a public information clearinghouse to purchase and provide books, literature, audiovisuals, and other educational material for the programs;

(6)iisponsor, promote, and conduct training programs for persons delivering prevention, intervention, treatment, and rehabilitation services and for persons in the criminal justice system or otherwise in a position to identify chemically dependent persons and their families in need of service;

(7)iirequire programs rendering services to chemically dependent persons to safeguard those persons' legal rights of citizenship and maintain the confidentiality of client records as required by state and federal law;

(8)iimaximize the use of available funds for direct services rather than administrative services;

Saturday, May 26, 2007 SENATE JOURNAL 4905


(9)iiconsistently monitor the expenditure of funds and the provision of services by all grant and contract recipients to assure that the services are effective and properly staffed and meet the standards adopted under this chapter;

(10)iimake the monitoring reports prepared under Subdivision (9) a matter of public record;

(11)iilicense treatment facilities under Chapter 464;

(12)iiuse funds appropriated to the commission to carry out this chapter and maximize the overall state allotment of federal funds;

(13)iidevelop and implement policies that will provide the public with a reasonable opportunity to appear before the commission and to speak on any issue under the commission's jurisdiction;

(14)iiestablish minimum criteria that peer assistance programs must meet to be governed by and entitled to the benefits of a law that authorizes licensing and disciplinary authorities to establish or approve peer assistance programs for impaired professionals;

(15)iiadopt rules governing the functions of the commission, including rules that prescribe the policies and procedures followed by the commission in administering any commission programs;

(16)iiplan, develop, coordinate, evaluate, and implement constructive methods and programs to provide healthy alternatives for youth at risk of selling controlled substances;

(17)iisubmit to the federal government reports and strategies necessary to comply with Section 1926 of the federal Alcohol, Drug Abuse, and Mental Health Administration Reorganization Act, Pub. L. 102-321 (42 U.S.C. Section 300x-26); reports and strategies are to be coordinated with appropriate state governmental entities; and

(18)iiregulate, coordinate, and provide training for alcohol awareness courses required under Section 106.115, Alcoholic Beverage Code, and may charge a fee for an activity performed by the commission under this subdivision[; and

[(19)iicontract with the Texas Department of Transportation for the Texas Department of Transportation to assume all responsibilities of the commission relating to the provision of transportation services for clients of eligible programs].

(e)iiNotwithstanding Subdivision (19), Subsection (a), Section 461.012, Health and Safety Code, the Health and Human Services Commission shall implement that section only to the extent necessary until the commission effects the transfer of the medical transportation program, as specified in Section 531.0057, Government Code, as added by this Act, to the commission not later than September 1, 2008.

(f)iiThe following sections remain in effect until September 1, 2008, for the limited purpose of effecting the transfer of the medical transportation program, as specified in Section 531.0057, Government Code, as added by this Act. The following sections are repealed, effective September 1, 2008:

(1)iiSubsection (b), Section 531.02412, Government Code;

(2)iiSubsection (g), Section 461.012, Health and Safety Code;

(3)iiSubsection (b), Section 533.012, Health and Safety Code;

(4)iiSubsection (e), Section 22.001, Human Resources Code;

(5)iiSubsection (f), Section 40.002, Human Resources Code;

4906 80th Legislature — Regular Session 68th Day


(6)iiSubsection (g), Section 91.021, Human Resources Code;

(7)iiSubsection (b), Section 101.0256, Human Resources Code;

(8)iiSubsection (d), Section 111.0525, Human Resources Code;

(9)iiSection 455.0015, Transportation Code; and

(10)iiSection 461.003, Transportation Code.

SECTIONi33.iiSEVERABILITY. If any provision of this Act is held by a court to be invalid, that invalidity does not affect the other provisions of this Act, and to this end the provisions of this Act are severable.

SECTIONi34.iiIf before implementing any provision of this Act a state agency determines that a waiver or authorization from a federal agency is necessary for implementation of that provision, the agency affected by the provision shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted.

SECTIONi35.iiExcept as otherwise provided by this Act, this Act takes effect September 1, 2007.

The Conference Committee Report on SBi10 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3609

Senator Ellis submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3609 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

ELLIS TALTON
BRIMER J. DAVIS
WHITMIRE GEREN
HARRIS HODGE
PITTS
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3609 was filed with the Secretary of the Senate.

Saturday, May 26, 2007 SENATE JOURNAL 4907


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1113

Senator Uresti submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi1113 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

URESTI TURNER
DEUELL DUTTON
HEGAR MADDEN
HINOJOSA BOLTON
On the part of the Senate On the part of the House

The Conference Committee Report on HBi1113 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2960

Senator Fraser submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2960 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

FRASER SMITHEE
ELTIFE HANCOCK
VANiDEiPUTTE DRIVER
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2960 was filed with the Secretary of the Senate.

4908 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

SENATE BILL 758

Senator Nelson submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi758 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

NELSON ROSE
DEUELL J. DAVIS
SHAPIRO S. KING
NICHOLS NAISHTAT
URESTI PARKER
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to child protective services; providing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.ii(a)iiSubsection (b), Section 29.153, Education Code, is amended to read as follows:

(b)iiA child is eligible for enrollment in a prekindergarten class under this section if the child is at least three years of age and [is]:

(1)iiis unable to speak and comprehend the English language;

(2)iiis educationally disadvantaged;

(3)iiis a homeless child, as defined by 42 U.S.C. Section 11434a [11302], regardless of the residence of the child, of either parent of the child, or of the child's guardian or other person having lawful control of the child;

(4)iiis the child of an active duty member of the armed forces of the United States, including the state military forces or a reserve component of the armed forces, who is ordered to active duty by proper authority; [or]

(5)iiis the child of a member of the armed forces of the United States, including the state military forces or a reserve component of the armed forces, who was injured or killed while serving on active duty; or

(6)iiis or ever has been in the conservatorship of the Department of Family and Protective Services following an adversary hearing held as provided by Section 262.201, Family Code.

(b)iiThe change in law made by this section applies beginning with the 2007-2008 school year.

Saturday, May 26, 2007 SENATE JOURNAL 4909


SECTIONi2.iiSubsection (a), Section 102.004, Family Code, is amended to read as follows:

(a)iiIn addition to the general standing to file suit provided by Section 102.003, a grandparent, or another relative of the child related within the third degree by consanguinity, may file an original suit requesting managing conservatorship if there is satisfactory proof to the court that:

(1)iithe order requested is necessary because the child's present circumstances would significantly impair the child's physical health or emotional development; or

(2)iiboth parents, the surviving parent, or the managing conservator or custodian either filed the petition or consented to the suit.

SECTIONi3.ii(a)iiSection 102.005, Family Code, is amended to read as follows:

Sec.i102.005.iiSTANDING TO REQUEST TERMINATION AND ADOPTION. An original suit requesting only an adoption or for termination of the parent-child relationship joined with a petition for adoption may be filed by:

(1)iia stepparent of the child;

(2)iian adult who, as the result of a placement for adoption, has had actual possession and control of the child at any time during the 30-day period preceding the filing of the petition;

(3)iian adult who has had actual possession and control of the child for not less than two months during the three-month period preceding the filing of the petition; [or]

(4)iian adult who has adopted, or is the foster parent of and has petitioned to adopt, a sibling of the child; or

(5)iianother adult whom the court determines to have had substantial past contact with the child sufficient to warrant standing to do so.

(b)iiThe change in law made by this section applies only to a suit affecting the parent-child relationship filed on or after the effective date of this Act. A suit affecting the parent-child relationship filed before the effective date of this Act is governed by the law in effect on the date the suit was filed, and the former law is continued in effect for that purpose.

SECTIONi4.ii(a)iiSection 162.304, Family Code, is amended by adding Subsections (g) and (h) to read as follows:

(g)iiThe executive commissioner of the Health and Human Services Commission by rule shall provide that the maximum amount of the subsidy under Subsection (b) that may be paid to an adoptive parent of a child under an adoption assistance agreement is an amount that is equal to the amount that would have been paid to the foster parent of the child, based on the child's foster care service level on the date the department and the adoptive parent enter into the adoption assistance agreement. This subsection applies only to a child who, based on factors specified in rules of the department, the department determines would otherwise have been expected to remain in foster care until the child's 18th birthday and for whom this state would have made foster care payments for that care. Factors the department may consider in determining whether a child is eligible for the amount of the subsidy authorized by this subsection include the following:

4910 80th Legislature — Regular Session 68th Day


(1)iithe child's mental or physical disability, age, and membership in a sibling group; and

(2)iithe number of prior placement disruptions the child has experienced.

(h)iiIn determining the amount that would have been paid to a foster parent for purposes of Subsection (g), the department:

(1)iishall use the minimum amount required to be paid to a foster parent for a child assigned the same service level as the child who is the subject of the adoption assistance agreement; and

(2)iimay not include any amount that a child-placing agency is entitled to retain under the foster care rate structure in effect on the date the department and the adoptive parent enter into the agreement.

(b)iiSubsections (g) and (h), Section 162.304, Family Code, as added by this section, apply only to an adoption assistance agreement that is entered into on or after the effective date of this Act. An adoption assistance agreement that was entered into before the effective date of this Act is governed by the law in effect on the date the agreement was entered into, and the former law is continued in effect for that purpose.

SECTIONi5.iiSubsection (a), Section 201.007, Family Code, is amended to read as follows:

(a)iiExcept as limited by an order of referral, an associate judge may:

(1)iiconduct a hearing;

(2)iihear evidence;

(3)iicompel production of relevant evidence;

(4)iirule on the admissibility of evidence;

(5)iiissue a summons for:

(A)iithe appearance of witnesses; and

(B)iithe appearance of a parent who has failed to appear before an agency authorized to conduct an investigation of an allegation of abuse or neglect of a child after receiving proper notice;

(6)iiexamine a witness;

(7)iiswear a witness for a hearing;

(8)iimake findings of fact on evidence;

(9)iiformulate conclusions of law;

(10)iirecommend an order to be rendered in a case;

(11)iiregulate all proceedings in a hearing before the associate judge;

(12)iiorder the attachment of a witness or party who fails to obey a subpoena;

(13)iiorder the detention of a witness or party found guilty of contempt, pending approval by the referring court as provided by Section 201.013;

(14)iirender and sign:

(A)iia final order agreed to in writing as to both form and substance by all parties;

(B)iia final default order; or

(C)iia temporary order; and

(15)iitake action as necessary and proper for the efficient performance of the associate judge's duties.

Saturday, May 26, 2007 SENATE JOURNAL 4911


SECTIONi6.iiSection 261.303, Family Code, is amended by amending Subsection (d) and adding Subsection (e) to read as follows:

(d)iiA person, including a medical facility, that makes a report under Subchapter B shall release to the department or designated agency, as part of the required report under Section 261.103, records that directly relate to the suspected abuse or neglect without requiring parental consent or a court order. If a child is transferred from a reporting medical facility to another medical facility to treat the injury or condition that formed the basis for the original report, the transferee medical facility shall, at the department's request, release to the department records relating to the injury or condition without requiring parental consent or a court order.

(e)iiA person, including a utility company, that has confidential locating or identifying information regarding a family that is the subject of an investigation under this chapter shall release that information to the department on request. The release of information to the department as required by this subsection by a person, including a utility company, is not subject to Section 552.352, Government Code, or any other law providing liability for the release of confidential information.

SECTIONi7.iiSection 261.3031, Family Code, is amended to read as follows:

Sec.i261.3031.iiFAILURE TO COOPERATE WITH INVESTIGATION; DEPARTMENT RESPONSE. (a)iiIf a parent or other person refuses to cooperate with the department's investigation of the alleged abuse or neglect of a child and the refusal poses a risk to the child's safety, the department shall seek assistance from the appropriate county attorney or district attorney or criminal district attorney with responsibility for representing the department as provided by Section 264.009 to obtain a court order as described by Section 261.303.

(b)iiA person's failure to report to an agency authorized to investigate abuse or neglect of a child within a reasonable time after receiving proper notice constitutes a refusal by the person to cooperate with the department's investigation. A summons may be issued to locate the person.

SECTIONi8.iiSection 263.102, Family Code, is amended by adding Subsections (f) and (g) to read as follows:

(f)iiThe department shall consult with relevant professionals to determine the skills or knowledge that the parents of a child under two years of age should learn or acquire to provide a safe placement for the child. The department shall incorporate those skills and abilities into the department's service plans, as appropriate.

(g)iiTo the extent that funding is available, the service plan for a child under two years of age may require therapeutic visits between the child and the child's parents supervised by a licensed psychologist or another relevant professional to promote family reunification and to educate the parents about issues relating to the removal of the child.

SECTIONi9.iiSectioni264.012, Family Code, is amended by adding Subsection (a-1) and amending Subsection (b) to read as follows:

(a-1)iiThe department shall spend money appropriated for the child protective services program to pay reasonable and necessary burial expenses for a person for whom the department is paying for foster care under Section 264.101(a-1)(2) and who dies while in foster care unless there is money in the person's estate or other money available to pay the person's burial expenses.

4912 80th Legislature — Regular Session 68th Day


(b)iiThe department may accept donations, gifts, or in-kind contributions to cover the costs of any burial expenses paid by the department under this section [for children for whom the department has been appointed managing conservator].

SECTIONi10.iiSubchapter A, Chapter 264, Family Code, is amended by adding Section 264.014 to read as follows:

Sec.i264.014.iiPROVISION OF COPIES OF CERTAIN RECORDS. If, at the time a child is discharged from foster care, the child is at least 18 years of age or has had the disabilities of minority removed, the department shall provide to the child, not later than the 30th day after the date the child is discharged from foster care, a copy of:

(1)iithe child's birth certificate;

(2)iithe child's immunization records; and

(3)iithe information contained in the child's health passport.

SECTIONi11.iiThe heading to Section 264.106, Family Code, is amended to read as follows:

Sec.i264.106.ii[REQUIRED] CONTRACTS FOR SUBSTITUTE CARE AND CASE MANAGEMENT SERVICES.

SECTIONi12.ii(a)iiSubsections (a), (b), (c), (e), and (g), Section 264.106, Family Code, are amended to read as follows:

(a)iiIn this section:

(1)ii"Case management services" means the provision of [case management] services, other than conservatorship services, to a child for whom the department has been appointed temporary or permanent managing conservator and the child's family, including:

(A)iideveloping and revising [caseworker-child visits, family visits, the convening of family group conferences, the development and revision of] the child and family case plan, using family group decision-making in appropriate cases;

(B)iicoordinating [the coordination] and monitoring permanency [of] services needed by the child and family to ensure[, and the assumption of court-related duties, including preparing court reports, attending judicial hearings and permanency hearings, and ensuring] that the child is progressing toward permanency within state and federal mandates; and

(C)iiassisting the department in a suit affecting the parent-child relationship commenced by the department.

(2)ii"Conservatorship services" means services provided directly by the department that the department considers necessary to ensure federal financial participation and compliance with state law requirements, including:

(A)iiinitial placement of a child and approval of all subsequent placements of a child;

(B)iiapproval of the child and family case plan; and

(C)iiany other action the department considers necessary to ensure the safety and well-being of a child ["Independent administrator" means an independent agency selected through a competitive procurement process to:

[(A)iisecure, coordinate, and manage substitute care services and case management services in a geographically designated area of the state; and

Saturday, May 26, 2007 SENATE JOURNAL 4913


[(B)iiensure continuity of care for a child referred to the administrator by the department and the child's family from the day a child enters the child protective services system until the child leaves the system].

(3)ii"Permanency services" means services[, other than family-based safety services,] provided to secure a child's safety, permanency, and well-being, including:

(A)iisubstitute care services;

(B)iimedical, dental, mental health, and educational services;

(C)ii[,] family reunification services;

(D)ii[,] adoption and postadoption services and[,] preparation for adult living services;

(E)iiconvening family group conferences;

(F)iichild and family visits;

(G)iirelative placement services; and

(H)iipost-placement supervision[, and case management] services.

(4)ii"Substitute care provider" means:

(A)iia child-care institution, a general residential operation, or a child-placing agency, as defined by Section 42.002, Human Resources Code; or

(B)iia provider of residential child-care that is licensed or certified by another state agency.

(5)ii"Substitute care services" means services provided by a substitute care provider to or for a child in the temporary or permanent managing conservatorship of the department or for the child's placement [children in substitute care and their families], including the recruitment, training, and management of foster and adoptive homes by a child-placing agency [foster parents, the recruitment of adoptive families, and the facilitation of the adoption process, family preservation, independent living, emergency shelter, residential group care, foster care, therapeutic foster care, and post-placement supervision, including relative placement]. The term does not include the regulation of facilities under Subchapter C, Chapter 42, Human Resources Code.

(b)iiThe department shall, in accordance with Chapter 45 [Section 45.004], Human Resources Code:

(1)iiassess the need for substitute care [and case management] services throughout the state;

(2)ii[either] contract [directly] with substitute care providers [private agencies as part of regional community-centered networks] for the provision of all necessary substitute care [and case management] services when the department determines that entering into a contract will improve services to children and families [or use an independent administrator to contract for those services];

(3)ii[contract with an independent administrator, if cost beneficial, to coordinate and manage all services needed for children in the temporary or permanent managing conservatorship of the department in a designated geographic area;

[(4)]iimonitor the quality of services for which the department contracts [and each independent administrator contract] under this section; and

(4)i[(5)]iiensure that the services are provided in accordance with federal law and the laws of this state, including department rules and rules of the Department of State Health Services and the Texas Commission on Environmental Quality.

4914 80th Legislature — Regular Session 68th Day


(c)iiThe department shall develop a pilot program for the competitive procurement of case management services in one or more geographic areas of the state. The department shall contract with one or more substitute care providers to provide case management services under the pilot program. The department shall have a goal of privatizing case management services in five percent of the cases in which the department has been appointed temporary or permanent managing conservator of a child [An independent administrator may not:

[(1)iidirectly provide substitute care services; or

[(2)iibe governed by a board that has a member who has a financial interest in a substitute care or case management provider with whom the independent administrator subcontracts].

(e)iiIn addition to the requirements of Section 40.058(b), Human Resources Code, a contract authorized under this section [with an independent administrator] must include provisions that:

(1)iienable the department to monitor the effectiveness of the services;

(2)iispecify performance outcomes;

(3)iiauthorize the department to terminate the contract or impose sanctions for a violation of a provision of the contract that specifies performance criteria;

(4)iiensure that a private agency that is providing substitute care or case management services for a child shall provide to the child's attorney ad litem and guardian ad litem access to the agency's information and records relating to the child; [an independent administrator may not refuse to accept a client who is referred for services or reject a client who is receiving services unless the department has reviewed the independent administrator's decision and approved the decision in writing;]

(5)iiauthorize the department, an agent of the department, and the state auditor to inspect all books, records, and files maintained by a contractor [an independent administrator] relating to the contract; and

(6)iithe department determines are necessary to ensure accountability for the delivery of services and for the expenditure of public funds.

(g)iiIn determining whether to contract with a substitute care provider [or an independent administrator], the department shall consider the provider's [or administrator's] performance under any previous contract between the department and the provider [or administrator].

(b)iiThe Department of Family and Protective Services shall enter into one or more contracts for case management services under the pilot program described by Section 264.106, Family Code, as amended by this section, on or before September 1, 2008, with a goal of contracting for case management services in five percent of the cases in the state in which the department has been appointed temporary or permanent managing conservator of a child. Notwithstanding this deadline, the department must continue to provide case management services in any area covered by the pilot program if:

(1)iithe department is unable to enter into a contract with a person to provide case management services; or

(2)iiafter entering into a contract, either the contractor or the department terminates the contract.

Saturday, May 26, 2007 SENATE JOURNAL 4915


(c)iiThe executive commissioner of the Health and Human Services Commission shall adopt rules describing the circumstances in which the Department of Family and Protective Services may continue to provide case management services on an emergency basis during the pilot program described in Section 264.106, Family Code, as amended by this section.

SECTIONi13.iiSection 264.1063, Family Code, is amended to read as follows:

Sec.i264.1063.iiMONITORING PERFORMANCE OF SUBSTITUTE CARE AND CASE MANAGEMENT PROVIDERS. (a)iiThe department, in consultation with substitute care providers [private entities] under contract with [either an independent administrator or] the department to provide substitute care or case management services, shall establish a quality assurance program that uses comprehensive, multitiered assurance and improvement systems [based, subject to the availability of funds, on real-time data] to evaluate performance.

(b)iiThe contract performance outcomes specified in a contract under Section 264.106 must be [consistent with the fiscal goals of privatizing substitute care and case management services and must be] within the contractor's authority to deliver. The contract must clearly define the manner in which the substitute care or case management provider's performance will be measured and identify the information sources the department [and, if applicable, the independent administrator] will use to evaluate the performance.

SECTIONi14.iiSection 264.107, Family Code, is amended by amending Subsections (c) through (f) and adding Subsection (g) to read as follows:

(c)iiThe department shall institute [contract between the department and an independent administrator or other authorized entity must require, not later than September 1, 2009,] the use of real-time technology in the department's [independent administrator's or other authorized entity's] placement system to screen possible placement options for a child and match the child's needs with the most qualified providers with vacancies.

(d)iiThe department shall [institute a quality assurance system in monitoring the independent administrators or other authorized entities to] ensure that placement decisions are reliable and are made in a consistent manner.

(e)iiIn making placement decisions, the department [an independent administrator or other authorized entity] shall:

(1)iiconsult with the child's caseworker and the child's attorney ad litem, guardian ad litem, or court-appointed volunteer advocate when possible; and

(2)iiuse clinical protocols to match a child to the most appropriate placement resource.

(f)iiThe department may create a regional advisory council in a region to assist the department [and independent administrator or other authorized entity] in:

(1)iiassessing the need for resources in the region; and

(2)iilocating substitute care services in the region for hard-to-place children.

(g)iiIf the department is unable to find an appropriate placement for a child, an employee of the department who has on file a background and criminal history check may provide temporary emergency care for the child. An employee may not provide emergency care under this subsection in the employee's residence. The department

4916 80th Legislature — Regular Session 68th Day


shall provide notice to the court for a child placed in temporary care under this subsection not later than the next business day after the date the child is placed in temporary care.

SECTIONi15.iiSubchapter B, Chapter 264, Family Code, is amended by adding Section 264.1071 to read as follows:

Sec.i264.1071.iiPLACEMENT FOR CHILDREN UNDER AGE TWO. In making a placement decision for a child under two years of age, the department shall:

(1)iiensure that the child is placed with a person who will provide a safe and emotionally stable environment for the child; and

(2)iigive priority to a person who will be able to provide care for the child without disruption until the child is returned to the child's parents or the department makes a permanent placement for the child.

SECTIONi16.iiSection 264.113, Family Code, is amended by adding Subsections (c) and (d) to read as follows:

(c)iiThe department shall work with OneStar Foundation to expand the program described by Subsection (b) to increase the number of foster families available for the department and its private providers. In cooperation with the department, OneStar Foundation may provide training and technical assistance to establish networks and services in faith-based organizations based on best practices for supporting prospective and current foster families.

(d)iiThe department shall work with the Department of Assistive and Rehabilitative Services to recruit foster parents and adoptive parents who have skills, training, or experience suitable to care for children with hearing impairments.

SECTIONi17.iiSection 264.121, Family Code, is amended by adding Subsection (c) to read as follows:

(c)iiAt the time a child enters the Preparation for Adult Living Program, the department shall provide an information booklet to the child and the foster parent describing the program and the benefits available to the child, including extended Medicaid coverage until age 21, priority status with the Texas Workforce Commission, and the exemption from the payment of tuition and fees at institutions of higher education as defined by Section 61.003, Education Code. The information booklet provided to the child and the foster parent shall be provided in the primary language spoken by that individual.

SECTIONi18.iiSubchapter B, Chapter 264, Family Code, is amended by adding Section 264.122 to read as follows:

Sec.i264.122.iiCOURT APPROVAL REQUIRED FOR TRAVEL OUTSIDE UNITED STATES BY CHILD IN FOSTER CARE. (a)iiA child for whom the department has been appointed managing conservator and who has been placed in foster care may travel outside of the United States only if the person with whom the child has been placed has petitioned the court for, and the court has rendered an order granting, approval for the child to travel outside of the United States.

(b)iiThe court shall provide notice to the department and to any other person entitled to notice in the suit if the court renders an order granting approval for the child to travel outside of the United States under this section.

SECTIONi19.iiSubchapter C, Chapter 264, Family Code, is amended by adding Section 264.2011 to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4917


Sec.i264.2011.iiENHANCED IN-HOME SUPPORT PROGRAM. (a)iiTo the extent that funding is available, the department shall develop a program to strengthen families through enhanced in-home support. The program shall assist certain low-income families and children in child neglect cases in which poverty is believed to be a significant underlying cause of the neglect and in which the enhancement of in-home support appears likely to prevent removal of the child from the home or to speed reunification of the child with the family.

(b)iiA family that meets eligibility criteria for inclusion in the program is eligible to receive limited funding from a flexible fund account to cover nonrecurring expenses that are designed to help the family accomplish the objectives included in the family's service plan.

(c)iiThe executive commissioner shall adopt rules establishing:

(1)iispecific eligibility criteria for the program described in this section;

(2)iithe maximum amount of money that may be made available to a family through the flexible fund account; and

(3)iithe purposes for which money made available under the program may be spent.

(d)iiThe department shall evaluate the results of the program to determine whether the program is successful in safely keeping families together. If the department determines that the program is successful, the department shall continue the program to the extent that funding is available.

SECTIONi20.iiSubsection (a), Section 264.203, Family Code, is amended to read as follows:

(a)iiExcept as provided by Subsection (d), the court on request of the department may order the parent, managing conservator, guardian, or other member of the subject [abused or neglected] child's household to:

(1)iiparticipate in the services the department provides or purchases for:

(A)iialleviating the effects of the abuse or neglect that has occurred; or

(B)iireducing the reasonable likelihood that the child may be abused or neglected in the immediate or foreseeable future; and

(2)ii[to] permit the child and any siblings of the child to receive the services.

SECTIONi21.iiChapter 266, Family Code, as added by Chapter 268, Acts of the 79th Legislature, Regular Session, 2005, is amended by adding Section 266.0031 to read as follows:

Sec.i266.0031.iiCOMMITTEE ON PEDIATRIC CENTERS OF EXCELLENCE RELATING TO ABUSE AND NEGLECT. (a)iiThe committee on pediatric centers of excellence relating to abuse and neglect is composed of 10 members appointed by the executive commissioner. The members must include:

(1)iia representative of the attorney general's office;

(2)iia representative of the Department of State Health Services;

(3)iia representative of the Department of Family and Protective Services;

(4)iia representative of the Health and Human Services Commission;

(5)iia representative of a child advocacy center;

(6)iithree pediatricians who specialize in treating victims of child abuse;

(7)iia representative from a children's hospital; and

4918 80th Legislature — Regular Session 68th Day


(8)iia representative of a medical school, as defined by Section 61.501, Education Code, with expertise in forensic consultation.

(b)iiThe executive commissioner shall designate a member representing the Department of State Health Services as the presiding officer of the committee.

(c)iiIf there is a medical director for the department, the executive commissioner shall appoint the medical director to be the department's representative on the committee.

(d)iiThe committee shall:

(1)iidevelop guidelines for designating regional pediatric centers of excellence that:

(A)iiprovide medical expertise to children who are suspected victims of abuse and neglect; and

(B)iiassist the department in evaluating and interpreting the medical findings for children who are suspected victims of abuse and neglect;

(2)iidevelop recommended procedures and protocols for physicians, nurses, hospitals, and other health care providers to follow in evaluating suspected cases of child abuse and neglect; and

(3)iirecommend methods to finance the centers of excellence and services described by this section.

(e)iiThe committee shall report its findings and recommendations to the department and the legislature not later than December 1, 2008.

(f)iiThis section expires January 1, 2010.

SECTIONi22.iiSubsection (a), Section 2155.1442, Government Code, is amended to read as follows:

(a)iiSubject to Subsection (e), the state auditor shall conduct a management review of the residential contract management employees of the Health and Human Services Commission and the Department of Family and Protective Services and make recommendations regarding the organization of, and skills and educational requirements for, those employees. The state auditor shall also make recommendations regarding the implementation of financial accountability provisions and processes to ensure effective and efficient expenditure of state and other contract funds. [The state auditor shall report annually to the governor, the lieutenant governor, the speaker of the house of representatives, and the comptroller on the auditor's recommendations and the commission's and department's implementation of each recommendation.]

SECTIONi23.iiSubchapter A, Chapter 191, Health and Safety Code, is amended by adding Section 191.0047 to read as follows:

Sec.i191.0047.iiBIRTH INFORMATION FOR DEPARTMENT OF FAMILY AND PROTECTIVE SERVICES. (a)iiThe Department of State Health Services shall implement an efficient and effective method to verify birth information or provide a certified copy of a birth record necessary to provide services for the benefit of a minor being served by the Department of Family and Protective Services.

(b)iiThe Department of State Health Services shall enter into a memorandum of understanding with the Department of Family and Protective Services to implement this section. The terms of the memorandum of understanding must include methods

Saturday, May 26, 2007 SENATE JOURNAL 4919


for reimbursing the Department of State Health Services in an amount that is not more than the actual costs the department incurs in verifying the birth information or providing the birth record to the Department of Family and Protective Services.

SECTIONi24.iiSubchapter B, Chapter 40, Human Resources Code, is amended by adding Sections 40.0325 and 40.0326 to read as follows:

Sec.i40.0325.iiSTUDY OF CASEWORKER EDUCATION REIMBURSEMENT. (a)iiThe department shall study the effect that providing reimbursement for certain educational expenses would have on recruiting and retaining qualified child protective services caseworkers. The study must include a comparative analysis of the cost of training new caseworkers and the benefits of having an experienced caseworker staff with the cost of providing reimbursement for educational expenses.

(b)iiIn determining the cost of reimbursing caseworkers for educational expenses, the department shall consider reimbursing caseworkers for tuition, academic fees, and other academic expenses the caseworker paid to an institution of higher education or a private or independent institution of higher education, as those terms are defined by Section 61.003, Education Code, while the caseworker was enrolled in a bachelor's degree or advanced degree program in an academic program that the department determines provides necessary training for child protective services caseworkers.

(c)iiNot later than December 1, 2008, the department shall report its findings and recommendations to the governor, lieutenant governor, and speaker of the house of representatives.

Sec.i40.0326.iiRECRUITMENT OF CASEWORKERS. When recruiting child protective services caseworkers, the department shall target its recruitment efforts toward individuals who hold a bachelor's degree or advanced degree in at least one of the following academic areas:

(1)iisocial work;

(2)iicounseling;

(3)iiearly childhood education;

(4)iipsychology;

(5)iicriminal justice;

(6)iielementary or secondary education;

(7)iisociology; or

(8)iihuman services.

SECTIONi25.iiSection 40.0528, Human Resources Code, is amended by adding Subsections (c) and (d) to read as follows:

(c)iiThis section does not prevent the department from contracting for special investigator services as needed.

(d)iiIn reporting information relating to caseloads of child protective services caseworkers, in addition to reporting caseload by each individual affected by the case, the department shall report the number of cases for each caseworker on the basis of family unit.

SECTIONi26.iiSection 40.071, Human Resources Code, is amended to read as follows:

4920 80th Legislature — Regular Session 68th Day


Sec.i40.071.iiDRUG-ENDANGERED CHILD INITIATIVE. The department shall establish a drug-endangered child initiative aimed at protecting children who are exposed to heroin, cocaine or any of its forms, or methamphetamine or to chemicals and other hazardous materials used in the illicit manufacture of methamphetamine.

SECTIONi27.iiSection 42.001, Human Resources Code, is amended to read as follows:

Sec.i42.001.iiPURPOSE. The purpose of this chapter is to protect the health, safety, and well-being of the children of the state who reside in child-care facilities by establishing statewide minimum standards for their safety and protection and by regulating the facilities through a licensing program [or by requiring child-care facilities to be regulated by alternative accreditation bodies]. It is the policy of the state to ensure the protection of all children under care in child-care facilities and to encourage and assist in the improvement of child-care programs. It is also the intent of the legislature that freedom of religion of all citizens is inviolate. With respect to a school or child-care facility sponsored by a religious organization, nothing in this chapter gives a governmental agency authority to regulate, control, supervise, or in any way be involved in the:

(1)iiform, manner, or content of religious instruction, ministry, teaching, or the curriculum offered by the school or facility;

(2)iiability of the school or facility to select and supervise qualified personnel, and otherwise control the terms of employment, including the right to employ individuals who share the religious views of the school or facility;

(3)iiinternal self-governance and autonomy of the school or facility; or

(4)iireligious environment of the school or facility, such as symbols, art, icons, and scripture.

SECTIONi28.iiSubsections (a) and (b), Section 42.021, Human Resources Code, are amended to read as follows:

(a)iiThe department may designate a division within the department to carry out responsibilities the department may delegate or assign under this chapter. The department shall ensure the independence of the division from the child protective services division.

(b)iiThe commissioner shall appoint as director of a division designated under Subsection (a) a person who meets the qualifications set by the executive commissioner. The commissioner shall ensure the director's independence from the child protective services division and may not terminate the director without the approval of the executive commissioner.

SECTIONi29.ii(a)iiSubchapter B, Chapter 42, Human Resources Code, is amended by adding Section 42.0211 to read as follows:

Sec.i42.0211.iiSAFETY SPECIALISTS, RISK ANALYSTS, AND PERFORMANCE MANAGEMENT. (a)iiThe division shall employ at least one specially trained investigation safety specialist, whose duties include the duty to:

(1)iireview and evaluate the intake of reports that include allegations associated with a higher risk of harm to the child; and

(2)iiconsult with the assigned investigator to provide specialized guidance and resources to assist the investigation.

Saturday, May 26, 2007 SENATE JOURNAL 4921


(b)iiThe division shall employ at least one risk analyst, whose duties include the duty to:

(1)iiidentify facilities, including child-placing agencies, whose compliance histories indicate the potential for a higher risk of harm to children in the care of the facility;

(2)iireview the monitoring and inspection reports for any facilities described by Subdivision (1) to assess the quality of the investigation or monitoring; and

(3)iiidentify any additional monitoring or enforcement action that may be appropriate to ensure the safety of a child in the care of the facility.

(c)iiThe division must include a performance management unit with duties that include:

(1)iiconducting quality assurance reviews of randomly selected monitoring and investigative reports to ensure compliance with all relevant laws, rules, and agency policies; and

(2)iimaking recommendations to improve the quality and consistency of monitoring and investigations.

(b)iiThe Department of Family and Protective Services shall implement the change in law made by the enactment of Section 42.0211, Human Resources Code, by this Act only to the extent that funding is available.

SECTIONi30.iiSubchapter B, Chapter 42, Human Resources Code, is amended by adding Section 42.0221 to read as follows:

Sec.i42.0221.iiCOMMITTEE ON LICENSING STANDARDS. (a)iiThe committee on licensing standards is composed of seven members appointed by the governor as follows:

(1)iione member who operates a residential child-care facility licensed by the department;

(2)iione member who operates a child-placing agency licensed by the department;

(3)iione member who operates a licensed child-care facility that provides care for children for less than 24 hours a day;

(4)iione member who is a parent, guardian, or custodian of a child who uses a facility licensed by the department;

(5)iione member who is an expert in the field of child care and child development; and

(6)iitwo members employed by the department who work with facilities licensed by the department.

(b)iiMembers of the committee serve two-year terms, with the terms of three or four members, as appropriate, expiring February 1 of each year.

(c)iiThe governor shall designate a member of the committee to serve as the presiding officer.

(d)iiThe committee shall meet twice a year at the call of the presiding officer.

(e)iiThe committee shall review and analyze the information provided by the department and committee members and shall make recommendations for policy and statutory changes relating to licensing standards and facility inspections. The review and analysis by the committee shall include the analysis of:

4922 80th Legislature — Regular Session 68th Day


(1)iithe deaths of children who are in substitute care, including reports and findings of child fatality review teams under Subchapter F, Chapter 264, Family Code;

(2)iithe types of licensing violations for each weighted risk and region;

(3)iithe details of administrative reviews and appeals; and

(4)iithe type of technical assistance provided and the qualifications of those providing technical assistance.

(f)iiThe committee shall report its findings and recommendations to the department and the legislature not later than December 1 of each year.

SECTIONi31.iiSection 42.042, Human Resources Code, is amended by adding Subsection (r) to read as follows:

(r)iiA residential child-care facility that provides emergency services may temporarily exceed the facility's capacity for not more than 48 hours to provide temporary care for a child in an emergency. The facility shall notify the department within 24 hours of the placement that the facility temporarily exceeded the facility's capacity.

SECTIONi32.ii(a)iiSection 42.044, Human Resources Code, is amended by adding Subsections (b-1) and (b-2) and amending Subsection (e) to read as follows:

(b-1)iiAt least one of the unannounced, annual inspections of a residential child-care facility must be conducted by a team of at least two residential child-care monitoring staff, and, if feasible, members of the inspection team must be from different residential child-care monitoring units.

(b-2)iiExcept as otherwise provided by this subsection, during an unannounced annual inspection of a day-care center, the department shall meet with the director designated by the day-care center as having daily, on-site responsibility for the operation of the day-care center to assess whether the director meets the qualifications of a director specified by this chapter and department rules. If the director is not present during the unannounced annual inspection, the department shall schedule a subsequent meeting with the director for that purpose and shall conduct that meeting at the day-care center.

(e)iiIn addition to the department's responsibility to investigate an agency foster home or agency foster group home under Subsection (c), the [The] department shall:

(1)iiperiodically conduct inspections of a random sample of agency foster homes and agency foster group homes;

(2)iiinvestigate any report of a serious incident in an agency foster home or agency foster group home that pertains to a child under the age of six;

(3)iiinvestigate any alleged violation of a minimum standard by an agency foster home or agency foster group home that poses a high degree of risk to a child in the care of the home who is under the age of six; and

(4)iiconduct at least one annual enforcement team conference for each child-placing agency to thoroughly review the investigations or inspections of the child-placing agency and all of its agency homes[. The department shall use the inspections] to monitor and enforce compliance by a child-placing agency with rules and standards established under Section 42.042.

(b)iiThe executive commissioner of the Health and Human Services Commission shall adopt rules specifying the types of alleged minimum standards violations that are considered to pose a high degree of risk to a child in the care of an agency foster home

Saturday, May 26, 2007 SENATE JOURNAL 4923


or agency foster group home under the age of six and must be investigated by the Department of Family and Protective Services under Subdivision (3), Subsection (e), Section 42.044, Human Resources Code, as added by this Act.

(c)iiThe Department of Family and Protective Services shall implement the change in law made by this Act to Section 42.044, Human Resources Code, only to the extent that funding is available. If funding is not available, the executive commissioner of the Health and Human Services Commission is not required to adopt rules as directed by Subsection (b) of this section.

SECTIONi33.iiSubsection (a), Section 42.0445, Human Resources Code, is amended to read as follows:

(a)iiBefore the department issues [or renews] a license, listing, registration, or certification under this subchapter, the department shall search the central registry of reported cases of child abuse or neglect established under Section 261.002, Family Code, to determine whether the applicant or the owner or an employee of the facility or family home is listed in the registry as a person who abused or neglected a child.

SECTIONi34.iiSubsection (a), Section 42.0461, Human Resources Code, is amended to read as follows:

(a)iiBefore the department may issue a license[, other than a renewal license,] or certificate to operate under Subchapter E for the operation or the expansion of the capacity of a foster group home or foster family home that is located in a county with a population of less than 300,000 and that provides child care for 24 hours a day at a location other than the actual residence of a child's primary caretaker or of a child care institution, the applicant for the license, certificate, or expansion shall, at the applicant's expense:

(1)iiconduct a public hearing on the application in accordance with department rules after notifying the department of the date, time, and location of the hearing; and

(2)iipublish notice of the application in a newspaper of general circulation in the community in which the child-care services are proposed to be provided.

SECTIONi35.iiSubsection (e), Section 42.048, Human Resources Code, is amended to read as follows:

(e)iiA license issued under this chapter is not transferable and applies only to the operator and facility location stated in the license application. Except as provided by this subsection, a [A] change in location or ownership automatically revokes a license. A change in location of a child-placing agency does not automatically revoke the license to operate the child-placing agency.

SECTIONi36.iiSection 42.0535, Human Resources Code, is amended by adding Subsections (e) and (f) to read as follows:

(e)iiThe department, by rule, shall develop a process by which a child-placing agency shall report to the department:

(1)iithe name of any verified foster home or foster group home that has been closed for any reason, including a voluntary closure;

(2)iiinformation regarding the reasons for the closure of the foster home or foster group home; and

4924 80th Legislature — Regular Session 68th Day


(3)iithe name and other contact information of a person who may be contacted by another child-placing agency to obtain the records relating to the closed foster home or foster group home that are required to be maintained and made available under this section.

(f)iiInformation gathered under Subsection (e) must be made available to child-placing agencies through a searchable database maintained by the department.

SECTIONi37.iiSubchapter C, Chapter 42, Human Resources Code, is amended by adding Section 42.0536 to read as follows:

Sec.i42.0536.iiTRANSFER OF AGENCY FOSTER HOME. (a)iiAn agency foster home that is verified by a child-placing agency may transfer to another child-placing agency only if, before the date of the transfer, the agency foster home notifies the child-placing agency to which the agency foster home is transferring of each licensing violation for which the agency foster home has been cited by the department during the preceding three years.

(b)iiThe child-placing agency to which the agency foster home is transferring shall submit a written request for transfer to the child-placing agency that verified the agency foster home.

(c)iiNot later than the 10th day after the date the child-placing agency receives a request for transfer under Subsection (b), the child-placing agency shall provide the child-placing agency that submitted the request a copy of any of the following documents regarding the agency foster home:

(1)iia corrective action plan;

(2)iian annual development plan; or

(3)iia description of any imposed or potential service limitation.

(d)iiThe department caseworker for each child placed in the agency foster home may conduct a review meeting to determine whether the transfer of the agency foster home is in the best interest of each child in the home on the request of:

(1)iithe child-placing agency to which the agency foster home is transferring;

(2)iithe child-placing agency that verified the agency foster home;

(3)iithe agency foster home; or

(4)iithe caseworker.

(e)iiAfter a review meeting, the caseworker shall determine whether each child placed in the agency foster home shall:

(1)iistay in the agency foster home after the agency foster home is transferred to the new child-placing agency; or

(2)iibe removed from the agency foster home before the agency foster home is transferred to the new child-placing agency.

SECTIONi38.iiThe heading to Section 42.056, Human Resources Code, is amended to read as follows:

Sec.i42.056.iiREQUIRED BACKGROUND AND CRIMINAL HISTORY CHECKS; CRIMINAL PENALTIES.

SECTIONi39.iiSection 42.056, Human Resources Code, is amended by adding Subsections (a-2), (b-1), (g), (h), (i), (j), and (k) to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4925


(a-2)iiIn accordance with rules adopted by the executive commissioner, the director, owner, or operator of a day-care center shall submit a complete set of fingerprints of each person whose name is submitted by the director, owner, or operator under Subsection (a). The rules adopted by the executive commissioner:

(1)iimust require that the fingerprints be submitted in a form and of a quality acceptable to the Department of Public Safety and the Federal Bureau of Investigation for conducting a criminal history check; and

(2)iimay require that the fingerprints be submitted electronically through an applicant fingerprinting service center.

(b-1)iiIn addition to any other background or criminal history check conducted under Subsection (b), for each person whose name is submitted by the director, owner, or operator of a day-care center under Subsection (a), the department shall conduct a state and Federal Bureau of Investigation criminal history check by:

(1)iisubmitting the person's fingerprints provided under Subsection (a-2), or causing the fingerprints to be submitted electronically as authorized by that subsection, to the Department of Public Safety for the purpose of conducting a state and federal criminal history check; and

(2)iiusing the resulting information made available by that department under Section 411.114, Government Code, and by the Federal Bureau of Investigation and any other criminal justice agency under Section 411.087, Government Code.

(g)iiExcept as otherwise provided by this subsection, a person whose name is submitted by the director, owner, or operator of a day-care center under Subsection (a) may not provide direct care or have direct access to a child in a day-care center before the person's background and criminal history checks under Subsections (b) and (b-1) are completed. A person may be employed at a day-care center and may provide direct care or have direct access to a child in the day-care center before the person's criminal history check under Subsection (b-1) is completed if:

(1)iithe state criminal history check and the background check using the department's records of reported abuse and neglect have been completed under Subsection (b), and the resulting information does not preclude the person from being present at the day-care center; and

(2)iithe day-care center is experiencing a staffing shortage that, if the day-care center were not allowed to employ the person until completion of the federal criminal history check, would result in a staff-to-child ratio that violates the department's minimum standards.

(h)iiIf the results of a criminal history check under Subsection (b-1) for a person employed by a day-care center during a staffing shortage as authorized by Subsection (g) preclude the person from being present at the day-care center, the director, owner, or operator of the day-care center shall immediately terminate the person's employment.

(i)iiA director, owner, or operator of a day-care center commits an offense if the director, owner, or operator knowingly:

(1)iifails to submit to the department information about a person as required by this section and department rules for use in conducting background and criminal history checks with respect to the person; and

4926 80th Legislature — Regular Session 68th Day


(2)iiemploys the person at the day-care center or otherwise allows the person to regularly or frequently stay or work at the day-care center while children are being provided care.

(j)iiA director, owner, or operator of a day-care center commits an offense if, after the date the director, owner, or operator receives notice from the department that, based on the results of a person's background or criminal history check, the person is precluded from being present at the day-care center, the director, owner, or operator knowingly:

(1)iiemploys the person at the day-care center; or

(2)iiotherwise allows the person to regularly or frequently stay or work at the day-care center while children are being provided care.

(k)iiAn offense under Subsection (i) or (j) is a Class B misdemeanor.

SECTIONi40.iiSection 42.0705, Human Resources Code, is amended to read as follows:

Sec.i42.0705.iiRANGE OF PENALTIES.iiThe department shall revoke or[,] suspend[, or refuse to renew] a license or registration, place on probation a person whose license or registration has been suspended, or reprimand a license holder or registration holder for a violation of this chapter or a rule of the board. If a license or registration suspension is probated, the department may require the license holder or registration holder to:

(1)iireport regularly to the department on matters that are the basis of the probation;

(2)iilimit services to the areas prescribed by the department;

(3)iicontinue or review professional education until the license holder or registration holder attains a degree of skill satisfactory to the department in those areas that are the basis of the probation; or

(4)iitake corrective action relating to the violation on which the probation is based.

SECTIONi41.iiSubchapter D, Chapter 42, Human Resources Code, is amended by adding Section 42.0761 to read as follows:

Sec.i42.0761.iiCRIMINAL PENALTY FOR OPERATING DAY-CARE CENTER WITHOUT QUALIFIED DIRECTOR. (a)iiAn owner or operator of a day-care center commits an offense if the owner or operator knowingly operates the day-care center:

(1)iiwithout a director who meets the qualifications of a director prescribed by department rules; or

(2)iiwithout the routine presence during the day-care center's hours of operation of a director described by Subdivision (1).

(b)iiAn offense under this section is a Class B misdemeanor.

SECTIONi42.iiSubsection (a), Section 42.078, Human Resources Code, is amended to read as follows:

(a)iiThe department may impose an administrative penalty against a facility or family home licensed or registered under this chapter that violates this chapter or a rule or order adopted under this chapter. In addition, the department may impose an administrative penalty against a residential child-care facility or a controlling person of a residential child-care facility if the facility or controlling person:

Saturday, May 26, 2007 SENATE JOURNAL 4927


(1)iiviolates a term of a license or registration issued under this chapter;

(2)iimakes a statement about a material fact that the facility or person knows or should know is false:

(A)iion an application for the issuance [or renewal] of a license or registration or an attachment to the application; or

(B)iiin response to a matter under investigation;

(3)iirefuses to allow a representative of the department to inspect:

(A)iia book, record, or file required to be maintained by the facility; or

(B)iiany part of the premises of the facility;

(4)iipurposefully interferes with the work of a representative of the department or the enforcement of this chapter; or

(5)iifails to pay a penalty assessed under this chapter on or before the date the penalty is due, as determined under this section.

SECTIONi43.iiThe heading to Chapter 45, Human Resources Code, is amended to read as follows:

CHAPTER 45. CONTRACTS FOR [PRIVATIZATION OF] SUBSTITUTE CARE AND CASE MANAGEMENT SERVICES

SECTIONi44.iiSubdivisions (1), (12), and (13), Section 45.001, Human Resources Code, are amended to read as follows:

(1)ii"Case management services" has the meaning assigned by Section 264.106, Family Code [means the provision of case management services to a child for whom the department has been appointed temporary or permanent managing conservator, including caseworker-child visits, family visits, the convening of family group conferences, the development and revision of the case plan, the coordination and monitoring of services needed by the child and family, and the assumption of court-related duties, including preparing court reports, attending judicial hearings and permanency hearings, and ensuring that the child is progressing toward permanency within state and federal mandates].

(12)ii"Substitute care provider" has the meaning assigned by Section 264.106, Family Code [means a child-care institution or a child-placing agency, as defined by Section 42.002].

(13)ii"Substitute care services" has the meaning assigned by Section 264.106, Family Code [means services provided to or for children in substitute care and their families, including the recruitment, training, and management of foster parents, the recruitment of adoptive families, and the facilitation of the adoption process, family reunification, independent living, emergency shelter, residential group care, foster care, therapeutic foster care, and post-placement supervision, including relative placement. The term does not include the regulation of facilities under Subchapter C, Chapter 42].

SECTIONi45.iiThe heading to Section 45.002, Human Resources Code, is amended to read as follows:

Sec.i45.002.iiCONTRACTS FOR [PRIVATIZING SUBSTITUTE CARE AND] CASE MANAGEMENT SERVICES; DEPARTMENT DUTIES.

SECTIONi46.iiSubsections (a) and (c), Section 45.002, Human Resources Code, are amended to read as follows:

4928 80th Legislature — Regular Session 68th Day


(a)iiNot later than September 1, 2008 [2011], the department shall contract with one or more providers of [complete the statewide privatization of the provision of substitute care and] case management services in one or more geographic areas of the state as provided by Section 264.106, Family Code, with a goal of contracting for those services in five percent of the cases in this state.

(c)iiThe [On and after September 1, 2011, the] department shall:

(1)iimonitor the quality of services for which the department contracts [and each independent administrator contract] under this chapter; [and]

(2)iiensure that the services are provided in accordance with federal law and the laws of this state, including department rules and rules of the Department of State Health Services and the Texas Commission on Environmental Quality; and

(3)iiensure that all substitute care and case management service providers, to the extent possible, honor the cultural and religious affiliations of a child placed in the service provider's care, regardless of the religious affiliation of the service provider.

SECTIONi47.iiSection 45.004, Human Resources Code, is amended to read as follows:

Sec.i45.004.ii[INDEPENDENT ADMINISTRATORS;] DEPARTMENT DATA SYSTEM DUTIES. [(a)iiThe department shall research and develop a comprehensive strategy for contracting for management support services from independent administrators on a regional basis. If the department determines that an independent administrator could manage and procure substitute care and case management services contracts with private agencies and conduct placement assessments in a more cost-beneficial manner, the department shall implement a transition plan to transfer the procurement, management, and oversight of substitute care and case management services from the department to an independent administrator, as well as responsibility for placement assessments. If the department determines that contracting for management support from an independent administrator is not cost beneficial, the privatization of substitute care and case management services will occur as provided by Section 45.002(b).

[(b)iiThe comprehensive strategy, at a minimum, must:

[(1)iiuse competitively procured independent administrators to procure and manage substitute care and case management providers in a geographic region designated by the department;

[(2)iirequire independent administrators to contract with private agencies that will:

[(A)iiincrease local foster and adoptive placement options for all children, especially teenagers, sibling groups, children whose race or ethnicity is disproportionately represented in foster care, children with severe or multiple disabilities, and other children who are difficult to place; and

[(B)iiexpand efforts to recruit foster families, adoptive families, and alternative care providers through faith-based and other targeted recruitment programs; and

[(3)iiallow permanency services providers to enter client, service, and outcome information into the department's client data system.

[(c)]iiSubject to the appropriation of funds, the department shall:

Saturday, May 26, 2007 SENATE JOURNAL 4929


(1)iienhance existing data systems to include contract performance information; and

(2)iiimplement a contracting data system developed or procured by the department, to track quality assurance and other contracting tools to effectively manage, monitor, and evaluate performance-based contracting functions.

SECTIONi48.iiThe heading to Section 45.054, Human Resources Code, is amended to read as follows:

Sec.i45.054.iiEVALUATION OF CASE MANAGEMENT SERVICES [REGIONAL IMPLEMENTATION].

SECTIONi49.iiSubsections (c) and (d), Section 45.054, Human Resources Code, are amended to read as follows:

(c)iiNot later than the second [first] anniversary of the date the department enters into the first contract for [substitute care and] case management services under a pilot program described by this chapter and Section 264.106, Family Code [section], the department shall contract with a qualified, independent third party to evaluate the pilot program [each phase of the privatization of substitute care and case management services]. Each evaluation must:

(1)iiassess the performance of [substitute care and] case management services based on compliance with defined quality outcomes for children;

(2)iiassess the achievement of performance measures;

(3)iicompare for quality the performance of [substitute care and] case management services provided by contractors to [substitute care and] case management services provided by the department [in similar regions];

(4)iidetermine if contracted services are cost beneficial; and

(5)iiassess the contractor's [private sector's] ability to meet the performance measures[, including service capacity, for the remaining regions].

(d)iiThe independent third party with whom the department contracts under Subsection (c) shall submit its reports and recommendations to the House Human Services Committee, or its successor, and the Senate Health and Human Services Committee, or its successor, not later than September 1, 2010.

SECTIONi50.iiSection 45.101, Human Resources Code, is amended to read as follows:

Sec.i45.101.iiGOALS FOR CONTRACTING [PRIVATIZATION]. In contracting for substitute care and case management services, the department's goals shall be:

(1)ii[The transition plan adopted under Section 45.053 must provide for a new structural model for the community-centered delivery of substitute care and case management services that is based on a goal of] improving protective services;

(2)ii[,] achieving timely permanency for children in substitute care, including family reunification, placement with a relative, or adoption;[,] and

(3)iiimproving the overall well-being of children in substitute care consistent with federal and state mandates.

SECTIONi51.ii(a)iiThe Department of Family and Protective Services shall develop a child protective services improvement plan that is designed to build on the child protective services reform elements added by Chapter 268, Acts of the 79th

4930 80th Legislature — Regular Session 68th Day


Legislature, Regular Session, 2005. In developing the plan, the department shall seek to expand on or modify initiatives that have resulted in demonstrable improvements and that serve the primary goals of:

(1)iikeeping families together while ensuring child safety in the home;

(2)iireducing the length of time children remain in state care; and

(3)iiimproving the quality and accountability of foster care.

(b)iiThe improvement plan must include:

(1)iiexpanding the use of family group decision-making;

(2)iireducing caseloads for caseworkers providing family-based safety services and ongoing substitute care services;

(3)iiimplementing an enhanced in-home support program, as enacted by Section 264.2011, Family Code, as added by this Act, to provide enhanced in-home supports to certain families;

(4)iiproviding additional purchased client services designed to keep families together and to reunite families more quickly while ensuring child safety;

(5)iienhancing support of kinship placements by hiring or contracting to provide additional kinship workers to provide additional support and education to relative placements and purchasing additional support services for relative placements;

(6)iienhancing services needed to support court services and preparation of records for adoptive placement;

(7)iiimproving the quality and accountability of child-care licensing monitoring and investigations by assigning those functions to separate staff, providing specialized training to staff who perform each function, performing additional investigations of certain reports involving young children, and providing additional support and oversight to both functions;

(8)iiexpanding substitute and adoptive placement quality and capacity in local communities through the procurement of a statewide needs assessment and through implementation of recommendations for expanding and improving provider capabilities;

(9)iistreamlining criminal history background checks to increase the efficiency and effectiveness of those checks;

(10)iiimproving the quality of services delivered by the Department of Family and Protective Services through expanded use of mobile technology and enhancements to the department's CLASS and IMPACT database systems and operations;

(11)iiexpanding implementation of the remediation plan required under Section 1.54, Chapter 268, Acts of the 79th Legislature, Regular Session, 2005, to address racial or ethnic disparities in foster care; and

(12)iiimplementing a statewide pilot program for a time-limited, posthospitalization "step-down" rate, approved by the executive commissioner of the Health and Human Services Commission, to support the successful transition of children who have experienced or are likely to experience multiple inpatient admissions in a psychiatric hospital to an appropriate level of care.

Saturday, May 26, 2007 SENATE JOURNAL 4931


(c)iiThe recommendations for expanding and improving provider capabilities under Subdivision (8), Subsection (b) of this section, must include provisions for start-up funding for providers to build necessary capacity in the state, partnerships with community leaders to identify local resources to support building capacity, and the development of pilot projects to procure regional capacity development. Beginning September 1, 2007, at the end of each fiscal year, the Department of Family and Protective Services shall prepare a progress report that details the department's activities in implementing the recommendations described in Subdivision (8), Subsection (b) of this section. The progress report must include regional data regarding the number of children in state conservatorship who are placed in their home region separated into classifications based on levels of care. The Department of Family and Protective Services shall submit the periodic progress reports required by this subsection to:

(1)iithe governor;

(2)iithe lieutenant governor;

(3)iithe speaker of the house of representatives;

(4)iiappropriate oversight committees of the legislature;

(5)iithe Legislative Budget Board; and

(6)iithe state auditor.

(d)iiThe Department of Family and Protective Services shall implement the improvement plan described by this section only to the extent that funds are available for that purpose. If funds are available to support some, but not all, elements of the plan, the department shall implement only those parts of the plan for which funding is available. To the extent feasible, the department shall contract for services needed to implement elements of the improvement plan, including the services needed to expand family group decision-making, family-based safety services, kinship support services, and purchased client services.

SECTIONi52.ii(a)iiNot later than December 31, 2007, the Department of Family and Protective Services shall prepare and submit a detailed plan for:

(1)iithe implementation of each element of the child protective services improvement plan required by Section 51 of this Act for which funding has been obtained; and

(2)iithe continued implementation of all child protective services reform activities required by Chapter 268, Acts of the 79th Legislature, Regular Session, 2005, as modified by this Act.

(b)iiAt the end of each fiscal year beginning August 31, 2008, the Department of Family and Protective Services shall prepare and submit a progress report that details the department's activities in implementing the plan described by Subdivision (1), Subsection (a) of this section. The progress report must include the department's calculation of cost savings from reduced stays in foster care and any other cost savings that can be attributed to the implementation of the improvement plan and continued child protective services reforms.

(c)iiThe Department of Family and Protective Services shall submit the implementation plan and periodic progress reports required by this section to:

(1)iithe governor;

(2)iithe lieutenant governor;

4932 80th Legislature — Regular Session 68th Day


(3)iithe speaker of the house of representatives;

(4)iiappropriate oversight committees of the legislature;

(5)iithe Legislative Budget Board; and

(6)iithe state auditor.

(d)iiThis section expires September 1, 2010.

SECTIONi53.iiThe Department of Family and Protective Services shall actively pursue a waiver or other authorization from an appropriate federal agency to use any available federal funds, including funds available under Title IV-E, Social Security Act (42 U.S.C. Section 670 et seq.), to provide monthly monetary assistance under a caregiver assistance agreement in accordance with Section 264.755, Family Code.

SECTIONi54.iiThe following sections are repealed:

(1)iiSubsections (d), (f), (i), (j), and (k), Section 264.106, Family Code;

(2)iiSection 264.1062, Family Code;

(3)iiSection 42.022, Human Resources Code;

(4)iiSection 42.0505, Human Resources Code;

(5)iiSubdivisions (5), (6), (8), (9), (10), and (11), Section 45.001, Human Resources Code;

(6)iiSubsections (b), (d), and (e), Section 45.002, Human Resources Code;

(7)iiSections 45.052 and 45.053, Human Resources Code;

(8)iiSubsections (a), (b), and (e) through (h), Section 45.054, Human Resources Code; and

(9)iiSection 45.102, Human Resources Code.

SECTIONi55.iiThe change in law made by this Act to Section 102.004, Family Code, applies only to an original suit affecting the parent-child relationship filed on or after the effective date of this Act. An original suit affecting the parent-child relationship filed before the effective date of this Act is governed by the law in effect on the date that the suit was filed, and the former law is continued in effect for that purpose.

SECTIONi56.iiSubsections (a-2), (b-1), (g), and (h), Section 42.056, Human Resources Code, as added by this Act, apply to the conduct of background and criminal history checks of a person whose name is submitted to the Department of Family and Protective Services under Subsection (a), Section 42.056, Human Resources Code, on or after the effective date of this Act.

SECTIONi57.iiThis Act takes effect September 1, 2007.

The Conference Committee Report on SBi758 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 4139

Senator Deuell submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Saturday, May 26, 2007 SENATE JOURNAL 4933


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi4139 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

DEUELL FLYNN
HINOJOSA BERMAN
WATSON R. COOK
WENTWORTH HARTNETT
HOPSON
On the part of the Senate On the part of the House

The Conference Committee Report on HBi4139 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1332

Senator West submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi1332 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

WEST CHAVEZ
BRIMER BRANCH
WHITMIRE DUTTON
FROST
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to the establishment of debt management policies and guidelines by the Bond Review Board, including the approval by the board of certain interest rate management agreements, and to other matters affecting public finance.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 1201.027, Government Code, is amended by adding Subsection (d) to read as follows:

4934 80th Legislature — Regular Session 68th Day


(d)iiAn issuer of a state security, as defined by Section 1231.001, that selects or contracts with a person to provide services under Subsection (a) shall, on request, submit to the Bond Review Board:

(1)iithe request for proposals to provide the services not later than the date the request for proposals is published;

(2)iieach final proposal received to provide the services before a contract for the services is entered into by the issuer; and

(3)iian executed contract entered into by an issuer for services under Subsection (a).

SECTIONi2.iiSection 1231.001, Government Code, is amended by adding Subdivision (1-a) to read as follows:

(1-a)ii"Interest rate management agreement" means an agreement that provides for an interest rate transaction, including a swap, basis, forward, option, cap, collar, floor, lock, or hedge transaction, for a transaction similar to those types of transactions, or for a combination of any of those types of transactions. The term includes:

(A)iia master agreement that provides standard terms for transactions;

(B)iian agreement to transfer collateral as security for transactions; and

(C)iia confirmation of transactions.

SECTIONi3.iiSubdivision (2), Section 1231.001, Government Code, is amended to read as follows:

(2)ii"State security" means:

(A)iian obligation, including a bond, issued by:

(i)iia state agency;

(ii)iian entity that is expressly created by statute and has statewide jurisdiction; or

(iii)iian entity issuing the obligation on behalf of this state or on behalf of an entity described by Subparagraph (i) or (ii); [or]

(B)iian installment sale or lease-purchase obligation that is issued by or on behalf of an entity described by Paragraph (A) and that has:

(i)iia stated term of more than five years; or

(ii)iian initial principal amount of more than $250,000; or

(C)iian obligation, including a bond, that is issued under Chapter 53, Education Code, at the request of or for the benefit of an institution of higher education as defined by Section 61.003, Education Code, other than a public junior college.

SECTIONi4.iiSubsection (c), Section 1231.023, Government Code, is amended to read as follows:

(c)iiThe board shall adopt policies that:

(1)iiprovide a mechanism for evaluating the amount of state debt that can be managed prudently;

(2)iiaddress opportunities to consolidate debt authority;

(3)iiinclude guidelines for:

(A)iiappropriate levels of reserves;

(B)iithe types of state security that should be issued under various circumstances; and

Saturday, May 26, 2007 SENATE JOURNAL 4935


(C)iithe terms or structure of a state security;

(4)iihelp the board and issuers of state securities to evaluate:

(A)iithe potential risks involved in the issuance of a state security or in the execution of an interest rate management agreement; and

(B)iithe effect that the issuance of a state security or that the execution of an interest rate management agreement will have on the finances and on the overall debt position of the issuer and of the state; and

(5)iirecommend other advisable practices related to the issuance of a state security.

SECTIONi5.iiSubchapter D, Chapter 1231, Government Code, is amended by adding Section 1231.063 to read as follows:

Sec.i1231.063.iiDEBT AFFORDABILITY STUDY. (a)iiThe board, in consultation with the Legislative Budget Board, shall annually prepare a study regarding the state's current debt burden by:

(1)iianalyzing the state's historical debt use and financial and economic resources to determine the amount of additional not self-supporting debt the state can accommodate; and

(2)iimonitoring how annual changes and new debt authorizations affect the mechanism described in Subsection (b).

(b)iiThe study must include a mechanism that can be used to determine, at a minimum, the state's debt affordability and serve as a guideline for debt authorizations and debt service appropriations. The mechanism must be designed to calculate:

(1)iithe not self-supporting debt service as a percentage of unrestricted revenues;

(2)iithe ratio of not self-supporting debt to personal income;

(3)iithe amount of not self-supporting debt per capita;

(4)iithe rate of debt retirement; and

(5)iithe ratio of not self-supporting debt service to budgeted or expended general revenue.

(c)iiNot later than December 1 of each year, the board shall submit the annual study to:

(1)iithe governor;

(2)iithe comptroller;

(3)iithe presiding officer of each house of the legislature; and

(4)iithe Senate Committee on Finance and House Appropriations Committee.

(d)iiThe annual study submitted under Subsection (c) must include a target and limit ratio for not self-supporting debt service as a percentage of unrestricted revenues.

SECTIONi6.iiSubchapter C, Chapter 1232, Government Code, is amended by adding Section 1232.124 to read as follows:

Sec.i1232.124.iiPREFERENCE FOR TEXAS BUSINESSES. If the authority contracts with a private entity to issue bonds under this chapter, the authority shall consider contracting with:

(1)iian entity that has a place of business in this state; and

(2)iia historically underutilized business as defined by Section 2161.001.

4936 80th Legislature — Regular Session 68th Day


SECTIONi7.iiChapter 1371, Government Code, is amended by adding Subchapter D to read as follows:

SUBCHAPTER D. ADVISERS RETAINED FOR THE ISSUANCE OF PUBLIC SECURITIES AND RELATED MATTERS

Sec.i1371.151.iiDEFINITIONS. In this subchapter:

(1)ii"Advice" means the advice provided by an adviser regarding activities described by Sections 1371.154(b)(2)(A)-(C).

(2)ii"Adviser" means a person who provides advice regarding activities described by Sections 1371.154(b)(2)(A)-(C).

(3)ii"Interest rate management agreement" means an agreement that provides for an interest rate transaction, including:

(A)iia swap, basis, forward, option, cap, collar, floor, lock, or hedge; or

(B)iiany combination of these types of agreements or transactions.

(4)ii"Municipal finance professional" means an individual, other than an individual whose functions are solely clerical or ministerial, whose activities include:

(A)iiunderwriting, trading, or the sale of municipal securities;

(B)iifinancial advisory or consultant services for issuers in connection with the issuance of public securities, the execution and delivery of interest rate management agreements, or the investment of the proceeds of public securities;

(C)iiresearch or investment advice with respect to municipal securities, provided that the research or advice relates to an activity described by Paragraph (A) or (B); or

(D)iiany other activity that involves direct or indirect communication with public investors regarding public securities, provided that the activity relates to an activity described by Paragraph (A) or (B).

(5)ii"Public security" has the meaning assigned by Section 1202.001.

Sec.i1371.152.iiEXEMPTIONS. This subchapter does not apply to:

(1)iian issuer who has more than $3 billion in outstanding obligations as of September 1, 2007, or to a nonprofit corporation investing funds on behalf of such an issuer;

(2)iia person acting as a financial adviser with respect to an issuance of public securities by an issuer created under Chapter 222, Water Code, delivered before January 1, 2010, under a contract that was in effect on September 1, 2007, and that has not been modified since that date;

(3)iian employee of an issuer providing advice to the issuer or to another issuer;

(4)iia state agency:

(A)iicreated by Section 49-b, Article III, Texas Constitution; or

(B)iithe head of which is an officer in the executive department under Section 1, Article IV, Texas Constitution; or

(5)iia corporation created under Section 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), by a municipality located in a county bordering the Rio Grande River.

Sec.i1371.153.iiEXEMPTIONS FOR CERTAIN ADVICE. This subchapter does not apply to advice to an issuer regarding:

Saturday, May 26, 2007 SENATE JOURNAL 4937


(1)iia loan or a line of credit by a depository institution to an issuer in a transaction not involving the issuance of a public security offered to a third party or parties; or

(2)iia deposit of funds with a depository institution in compliance with another statute of this state.

Sec.i1371.154.iiFINANCIAL ADVISER OR INVESTMENT ADVISER QUALIFICATIONS AND REQUIREMENTS FOR CERTAIN AGREEMENTS AND TRANSACTIONS. (a)iiThis section applies to a financial adviser or an investment adviser who advises the issuer in connection with:

(1)iian interest rate management agreement;

(2)iithe execution or delivery of a public security; or

(3)iithe investment of the public security proceeds.

(b)iiTo be eligible to be a financial adviser or an investment adviser under this subchapter, the adviser must:

(1)iibe registered:

(A)iias a dealer or investment adviser in accordance with Section 12 or 12-1, The Securities Act (Article 581-12 or 581-12-1, Vernon's Texas Civil Statutes); or

(B)iiwith the United States Securities and Exchange Commission under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.), if the adviser is providing advice on the investment of bond proceeds and not on the issuance of a public security or an interest rate management agreement;

(2)iihave relevant experience in providing advice to issuers in connection with:

(A)iithe issuance of public securities;

(B)iithe valuation of interest rate management agreements; or

(C)iithe investment of public security proceeds; and

(3)iiacknowledge in writing to the issuer that in connection with the transaction for which the adviser is providing advice the adviser:

(A)iiis acting as the issuer's agent; and

(B)iihas complied with the requirements of this subchapter.

Sec.i1371.155.iiREQUIREMENTS. (a)iiAn adviser, including an adviser that is not required to be registered under Section 1371.154(b)(1)(A), shall comply with the following with respect to all services contemplated under this subchapter to be provided in this state:

(1)iiin conducting services as an adviser of the issuer, the adviser shall deal fairly with all persons and may not engage in any deceptive, dishonest, or unfair practice;

(2)iiin recommending to an issuer any transaction involving the issuance of public securities, the execution and delivery of interest rate management agreements, or the investment of proceeds of securities, the adviser shall have reasonable grounds for making the recommendation based on the information made available by the issuer or information the adviser otherwise knows about the issuer;

4938 80th Legislature — Regular Session 68th Day


(3)iithe adviser may not in any year, directly or indirectly, give or permit to be given to an employee or an elected or appointed official of an issuer gifts or services of value, including gratuities, that have a total cumulative value of more than $100;

(4)iithe adviser may not, directly or indirectly, provide or agree to provide payment to a person who is not affiliated with the adviser for a solicitation of advisory business for the adviser; and

(5)iithe adviser may not act as adviser to an issuer before the second anniversary of the date of making a contribution to an official of the issuer if the contribution is made by:

(A)iithe adviser;

(B)iia municipal finance professional associated with the adviser; or

(C)iia political action committee controlled by the adviser or by a municipal finance profession associated with the adviser.

(b)iiNotwithstanding Subsection (a)(3), this section does not prohibit an adviser, including an adviser that is not required to be registered under Section 1371.154(b)(1)(A), from:

(1)iigiving an employee or an elected or appointed official of an issuer occasional gifts of meals or tickets to theatrical, sporting, or other entertainments hosted by the adviser;

(2)iisponsoring legitimate business functions for the issuer that are recognized by the Internal Revenue Service as deductible business expenses; or

(3)iiproviding to the issuer or an employee or elected or appointed official of the issuer gifts of reminder advertising.

(c)iiA gift or sponsorship given or provided by an adviser, including an adviser that is not required to be registered under Section 1371.154(b)(1)(A), to an issuer under Subsection (b) may not be so frequent or so extensive that a question of impropriety is raised.

(d)iiNotwithstanding Subsection (a)(5), this section does not prohibit an adviser, including an adviser that is not required to be registered under Section 1371.154(b)(1)(A), from acting as an adviser to an issuer if the only contributions made to an official of the issuer before the second anniversary of the date of making a contribution described by Subsection (a)(5):

(1)iiwere made by municipal finance professionals who were entitled to vote; and

(2)iiwere not in excess of $250 for each election.

SECTIONi8.iiSection 1372.031, Government Code, is amended to read as follows:

Sec.i1372.031.iiPRIORITIES FOR RESERVATIONS AMONG CERTAIN ISSUERS. (a)iiExcept as provided by Subsection (b) and subject [Subject] to Sections 1372.0321 and 1372.0231, if, on or before October 20, more than one issuer in a category described by Section 1372.022(a)(2), (3), (4), or (6) applies for a reservation of the state ceiling for the next program year, the board shall grant reservations in that category in the order determined by the board by lot.

Saturday, May 26, 2007 SENATE JOURNAL 4939


(b)iiUntil August 1 of the program year, within the category described by Section 1372.022(a)(6), the board shall grant priority to the Texas Economic Development Bank for projects that the Texas Economic Development and Tourism Office determines meet the governor's criteria for funding from the Texas Enterprise Fund. Notwithstanding the priority, the Texas Economic Development Bank may not receive an amount greater than one-sixth of the portion of the state ceiling available under Section 1372.022(a)(6) on January 1 of the program year.

(c)iiIn selecting projects for reservations of the state ceiling for a program year under Subsection (b), among those projects the Texas Economic Development and Tourism Office determines meet the governor's criteria for funding from the Texas Enterprise Fund the office shall give priority to obtaining reservations for those projects located or to be located in an economically depressed or blighted area, as defined by Section 2306.004, or in an enterprise zone designated under Chapter 2303.

(d)iiThis section and Section 1372.063 do not give a priority to any project described by Subsection (b) for the purpose of selecting projects for reservations under Section 1372.022(b).

(e)iiThe Texas Economic Development Bank is subject to Section 1201.027(d).

SECTIONi9.iiSection 1372.063, Government Code, is amended to read as follows:

Sec.i1372.063.iiPRIORITY 1 CARRYFORWARD CLASSIFICATION. The priority 1 carryforward classification applies to:

(1)iian issuer of a state-voted issue; and

(2)iia state agency, other than an issuer of a state-voted issue, that applies for a carryforward designation for a project that:

(A)iiis described by Section 1372.067(a)(2); and

(B)iithe Texas Economic Development and Tourism Office determines meets the governor's criteria for funding from the Texas Enterprise Fund.

SECTIONi10.iiSubsection (d), Section 1201.027, Government Code, as added by this Act, applies only to:

(1)iia contract for which the solicitation of applicable bids, offers, qualifications, proposals, or other similar expressions of interest is published on or after September 1, 2007; or

(2)iiif no solicitation described by Subdivision (1) of this section is published in relation to the contract, a contract entered into on or after September 15, 2007.

SECTIONi11.ii(a)iiExcept as provided by Subsection (b) of this section, this Act takes effect September 1, 2007.

(b)iiSections 1371.154 and 1371.155, Government Code, as added by this Act, take effect January 1, 2008.

The Conference Committee Report on SBi1332 was filed with the Secretary of the Senate.

4940 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 610

Senator Hegar submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi610 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

HEGAR F. BROWN
NICHOLS B. BROWN
PATRICK D. HOWARD
WATSON ISETT
HANCOCK
On the part of the Senate On the part of the House

The Conference Committee Report on HBi610 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2094

Senator Carona submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2094 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

CARONA HILL
ELLIS JACKSON
WHITMIRE KRUSEE
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2094 was filed with the Secretary of the Senate.

Saturday, May 26, 2007 SENATE JOURNAL 4941


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3200

Senator Whitmire submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3200 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

WHITMIRE MADDEN
DEUELL HAGGERTY
HEGAR HOCHBERG
HINOJOSA MCREYNOLDS
SELIGER ZEDLER
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3200 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3851

Senator Shapiro submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3851 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

SHAPIRO MORRISON
NELSON AYCOCK
CARONA F. BROWN
PATRICK
ROSE
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3851 was filed with the Secretary of the Senate.

4942 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

SENATE BILL 12

Senator Averitt submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi12 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

AVERITT BONNEN
DUNCAN RITTER
BRIMER HANCOCK
ELTIFE DRIVER
TAYLOR
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to programs for the enhancement of air quality, including energy efficiency standards in state purchasing and energy consumption; providing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. LOW-INCOME VEHICLE REPAIR ASSISTANCE, RETROFIT, AND ACCELERATED VEHICLE RETIREMENT PROGRAM

SECTIONi1.01.iiSection 382.003, Health and Safety Code, is amended by adding Subdivisions (7-a), (9-a), and (10-a) to read as follows:

(7-a)ii"Hybrid motor vehicle" means a motor vehicle that draws propulsion energy from both gasoline or conventional diesel fuel and a rechargeable energy storage system.

(9-a)ii"Motor vehicle" means a fully self-propelled vehicle having four wheels that has as its primary purpose the transport of a person or persons, or property, on a public highway.

(10-a)ii"Qualifying motor vehicle" means a motor vehicle that meets the requirements of Section 382.210(b).

SECTIONi1.02.iiSubsection (b), Section 382.0622, Health and Safety Code, is amended to read as follows:

(b)iiExcept as provided by Subsection [Subsections] (b-1) [and (e)], Clean Air Act fees shall be deposited in the state treasury to the credit of the clean air account and shall be used to safeguard the air resources of the state.

Saturday, May 26, 2007 SENATE JOURNAL 4943


SECTIONi1.03.iiSection 382.209, Health and Safety Code, is amended by amending Subsections (b), (e), and (g) and adding Subsections (i) and (j) to read as follows:

(b)iiThe commission shall provide funding for local low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement programs with available funds collected under Section 382.202, 382.302, or other designated and available funds. The programs shall be administered in accordance with Chapter 783, Government Code. Program [Programmatic] costs may include call center management, application oversight, invoice analysis, education, outreach, and advertising. Not more than 10 percent of the money provided to a local low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program under this section may be used for the administration of the programs, including program costs.

(e)iiA vehicle is not eligible to participate in a low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program established under this section unless:

(1)iithe vehicle is capable of being operated;

(2)iithe registration of the vehicle:

(A)iiis current; and

(B)iireflects that the vehicle has been registered in the county implementing the program for the 12 months preceding the application for participation in the program;

(3)iithe commissioners court of the county administering the program determines that the vehicle meets the eligibility criteria adopted by the commission, the Texas Department of Transportation, and the Public Safety Commission; [and]

(4)iiif the vehicle is to be repaired, the repair is done by a repair facility recognized by the Department of Public Safety, which may be an independent or private entity licensed by the state; and

(5)iiif the vehicle is to be retired under this subsection and Section 382.213, the replacement vehicle is a qualifying motor vehicle.

(g)iiA participating county may contract with any appropriate entity, including the regional council of governments or the metropolitan planning organization in the appropriate region, or with another county for services necessary to implement the participating county's low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program. The participating counties in a nonattainment region or counties participating in an early action compact under Subchapter H may agree to have the money collected in any one county be used in any other participating county in the same region. [The participating counties may also agree to contract with any appropriate entity, including the regional metropolitan planning organization or council of governments, to implement a program under Section 382.217.]

(i)iiNotwithstanding the vehicle replacement requirements provided by Subsection (d)(2), the commission by rule may provide monetary or other compensatory assistance under the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program, subject to the availability of funds, for the replacement of a vehicle that meets the following criteria:

(1)iithe vehicle is gasoline-powered and is at least 10 years old;

(2)iithe vehicle owner meets applicable financial eligibility criteria;

4944 80th Legislature — Regular Session 68th Day


(3)iithe vehicle meets the requirements provided by Subsections (e)(1) and (2); and

(4)iithe vehicle has passed a Department of Public Safety motor vehicle safety inspection or safety and emissions inspection within the 15-month period before the application is submitted.

(j)iiThe commission may provide monetary or other compensatory assistance under the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program for a replacement vehicle or replacement assistance for a pre-1996 model year replacement vehicle that passes the required United States Environmental Protection Agency Start-Up Acceleration Simulation Mode Standards emissions test but that would have failed the United States Environmental Protection Agency Final Acceleration Simulation Mode Standards emissions test or failed to meet some other criterion determined by the commission; provided, however, that a replacement vehicle under this subsection must be a qualifying motor vehicle.

SECTIONi1.04.iiSection 382.210, Health and Safety Code, is amended to read as follows:

Sec.i382.210.iiIMPLEMENTATION GUIDELINES AND REQUIREMENTS. (a)iiThe commission by rule shall adopt guidelines to assist a participating county in implementing a low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program authorized under Section 382.209. The guidelines at a minimum shall recommend:

(1)iia minimum and maximum amount for repair assistance;

(2)iia minimum and maximum amount toward the purchase price of a replacement vehicle qualified for the accelerated retirement program, based on vehicle type and model year, with the maximum amount not to exceed:

(A)ii$3,000 for a replacement car of the current model year or the previous three model years, except as provided by Paragraph (C);

(B)ii$3,000 for a replacement truck of the current model year or the previous two model years, except as provided by Paragraph (C); and

(C)ii$3,500 for a replacement hybrid vehicle of the current model year or the previous model year;

(3)iicriteria for determining eligibility, taking into account:

(A)iithe vehicle owner's income, which may not exceed 300 percent of the federal poverty level;

(B)iithe fair market value of the vehicle; and

(C)iiany other relevant considerations;

(4)iisafeguards for preventing fraud in the repair, purchase, or sale of a vehicle in the program; and

(5)iiprocedures for determining the degree and amount of repair assistance a vehicle is allowed, based on:

(A)iithe amount of money the vehicle owner has spent on repairs;

(B)iithe vehicle owner's income; and

(C)iiany other relevant factors.

(b)iiA replacement vehicle described by Subsection (a)(2) must:

Saturday, May 26, 2007 SENATE JOURNAL 4945


(1)iiexcept as provided by Subsection (c), be a vehicle in a class or category of vehicles that has been certified to meet federal Tier 2, Bin 5 or a cleaner Bin certification under 40 C.F.R. Section 86.1811-04, as published in the February 10, 2000, Federal Register;

(2)iihave a gross vehicle weight rating of less than 10,000 pounds; and

(3)iibe a vehicle the total cost of which does not exceed $25,000.

(c)iiThe commission may adopt any revisions made by the federal government to the emissions standards described by Subsection (b)(1).

(d)iiA participating county shall provide an electronic means for distributing vehicle repair or replacement funds once all program criteria have been met with regard to the repair or replacement. The county shall ensure that funds are transferred to a participating dealer under this section not later than five business days after the date the county receives proof of the sale and any required administrative documents from the participating dealer.

(e)iiIn rules adopted under this section, the commission shall require a mandatory procedure that:

(1)iiproduces a document confirming that a person is eligible to purchase a replacement vehicle in the manner provided by this chapter, and the amount of money available to the participating purchaser;

(2)iiprovides that a person who seeks to purchase a replacement vehicle in the manner provided by this chapter is required to have the document required by Subdivision (1) before the person enters into negotiation for a replacement vehicle in the manner provided by this chapter; and

(3)iiprovides that a participating dealer who relies on a document issued as required by Subdivision (1) has no duty to otherwise confirm the eligibility of a person to purchase a replacement vehicle in the manner provided by this chapter.

(f)iiIn this section, "total cost" means the total amount of money paid or to be paid for the purchase of a motor vehicle as set forth as "sales price" in the form entitled "Application for Texas Certificate of Title" promulgated by the Texas Department of Transportation. In a transaction that does not involve the use of that form, the term means an amount of money that is equivalent, or substantially equivalent, to the amount that would appear as "sales price" on the Application for Texas Certificate of Title if that form were involved.

SECTIONi1.05.iiSection 382.213, Health and Safety Code, is amended by amending Subsection (a) and adding Subsections (d) through (i) to read as follows:

(a)iiExcept as provided by Subsection (c) and Subdivision (5) of this subsection, a vehicle retired under an accelerated vehicle retirement program authorized by Section 382.209 may not be resold or reused in its entirety in this or another state. Subject to the provisions of Subsection (i), the automobile dealer who takes possession of the vehicle must submit to the program administrator proof, in a manner adopted by the commission, that the vehicle has been retired. The vehicle must be:

(1)iidestroyed;

(2)iirecycled;

(3)iidismantled and its parts sold as used parts or used in the program;

4946 80th Legislature — Regular Session 68th Day


(4)iiplaced in a storage facility of a program established under Section 382.209 and subsequently destroyed, recycled, or dismantled and its parts sold or used in the program; or

(5)iirepaired, brought into compliance, and used as a replacement vehicle under Section 382.209(d)(2).

(d)iiNotwithstanding Subsection (a)(3), the dismantler of a vehicle shall scrap the emissions control equipment and engine. The dismantler shall certify that the equipment and engine have been scrapped and not resold into the marketplace. A person who causes, suffers, allows, or permits a violation of this subsection or of a rule adopted under this section is subject to a civil penalty under Subchapter D, Chapter 7, Water Code, for each violation. For purposes of this subsection, a separate violation occurs with each fraudulent certification or prohibited resale.

(e)iiNotwithstanding Subsection (d), vehicle parts not related to emissions control equipment or the engine may be resold in any state. The only cost to be paid by a recycler for the residual scrap metal of a vehicle retired under this section shall be the cost of transportation of the residual scrap metal to the recycling facility.

(f)iiAny dismantling of vehicles or salvaging of steel under this section must be performed at a facility located in this state.

(g)iiIn dismantling a vehicle under this section, the dismantler shall remove any mercury switches in accordance with state and federal law.

(h)iiFor purposes of this section, the commission shall adopt rules defining "emissions control equipment" and "engine."

(i)iiNotwithstanding any other provision of this section, and except as provided by this subsection, a dealer is in compliance with this section and incurs no civil or criminal liability as a result of the disposal of a replaced vehicle if the dealer produces proof of transfer of the replaced vehicle by the dealer to a dismantler. The defense provided by this subsection is not available to a dealer who knowingly and intentionally conspires with another person to violate this section.

SECTIONi1.06.iiSubchapter G, Chapter 382, Health and Safety Code, is amended by adding Section 382.219 to read as follows:

Sec.i382.219.iiPURCHASE OF REPLACEMENT VEHICLE; AUTOMOBILE DEALERSHIPS. (a)iiAn amount described by Section 382.210(a)(2) may be used as a down payment toward the purchase of a replacement vehicle.

(b)iiAn automobile dealer that participates in the procedures and programs offered by this chapter must be located in the state. No dealer is required to participate in the procedures and programs provided by this chapter.

SECTIONi1.07.iiSubchapter G, Chapter 382, Health and Safety Code, is amended by adding Section 382.220 to read as follows:

Sec.i382.220.iiUSE OF FUNDING FOR LOCAL INITIATIVE PROJECTS. (a)iiMoney that is made available to participating counties under Section 382.202(g) or 382.302 may be appropriated only for programs administered in accordance with Chapter 783, Government Code, to improve air quality. A participating county may agree to contract with any appropriate entity, including a metropolitan planning organization or a council of governments to implement a program under Section 382.202, 382.209, or this section.

Saturday, May 26, 2007 SENATE JOURNAL 4947


(b)iiA program under this section must be implemented in consultation with the commission and may include a program to:

(1)iiexpand and enhance the AirCheck Texas Repair and Replacement Assistance Program;

(2)iidevelop and implement programs or systems that remotely determine vehicle emissions and notify the vehicle's operator;

(3)iidevelop and implement projects to implement the commission's smoking vehicle program;

(4)iidevelop and implement projects for coordinating with local law enforcement officials to reduce the use of counterfeit state inspection stickers by providing local law enforcement officials with funds to identify vehicles with counterfeit state inspection stickers and to carry out appropriate actions;

(5)iidevelop and implement programs to enhance transportation system improvements; or

(6)iidevelop and implement new air control strategies designed to assist local areas in complying with state and federal air quality rules and regulations.

(c)iiMoney that is made available for the implementation of a program under Subsection (b) may not be expended for call center management, application oversight, invoice analysis, education, outreach, or advertising purposes.

(d)iiFees collected under Sections 382.202 and 382.302 may be used, in an amount not to exceed $5 million per fiscal year, for projects described by Subsection (b). The fees shall be made available only to counties participating in the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement programs created under Section 382.209 and only on a matching basis, whereby the commission provides money to a county in the same amount that the county dedicates to a project authorized by Subsection (b).

SECTIONi1.08.iiSubsection (b), Section 152.002, Tax Code, is amended to read as follows:

(b)ii"Total consideration" does not include:

(1)iia cash discount;

(2)iia full cash or credit refund to a customer of the sales price of a motor vehicle returned to the seller;

(3)iithe amount charged for labor or service rendered in installing, applying, remodeling, or repairing the motor vehicle sold;

(4)iia financing, carrying, or service charge or interest on credit extended on a motor vehicle sold under a conditional sale or other deferred payment contract;

(5)iithe value of a motor vehicle taken by a seller as all or a part of the consideration for sale of another motor vehicle, including any cash payment to the buyer under Section 348.404, Finance Code;

(6)iia charge for transportation of the motor vehicle after a sale; [or]

(7)iimotor vehicle inventory tax; or

(8)iian amount made available to the customer under Subchapter G, Chapter 382, Health and Safety Code.

SECTIONi1.09.iiSection 7.102, Water Code, is amended to read as follows:

4948 80th Legislature — Regular Session 68th Day


Sec.i7.102.iiMAXIMUM PENALTY. A person who causes, suffers, allows, or permits a violation of a statute, rule, order, or permit relating to Chapter 37 of this code, Chapter 366, 371, or 372, Health and Safety Code, Subchapter G, Chapter 382, Health and Safety Code, or Chapter 1903, Occupations Code, shall be assessed for each violation a civil penalty not less than $50 nor greater than $5,000 for each day of each violation as the court or jury considers proper. A person who causes, suffers, allows, or permits a violation of a statute, rule, order, or permit relating to any other matter within the commission's jurisdiction to enforce, other than violations of Chapter 11, 12, 13, 16, or 36 of this code, or Chapter 341, Health and Safety Code, shall be assessed for each violation a civil penalty not less than $50 nor greater than $25,000 for each day of each violation as the court or jury considers proper. Each day of a continuing violation is a separate violation.

SECTIONi1.10.iiThe following provisions of the Health and Safety Code are repealed:

(1)iiSubsection (e), Section 382.0622;

(2)iiSubsections (q) and (r), Section 382.202; and

(3)iiSection 382.217.

SECTIONi1.11.iiThe Texas Commission on Environmental Quality shall review its current cutpoint levels for nitrogen oxide emissions and determine whether a lower cutpoint standard would best serve the interest of the public health and welfare. The determination shall be made by rule not later than January 1, 2008. If the commission adopts a lower cutpoint standard, the commission shall make the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program under Section 382.209, Health and Safety Code, as amended by this article, available to owners of vehicles that did not meet the prior, more stringent standard.

SECTIONi1.12.ii(a)iiThe Texas Commission on Environmental Quality shall seek to work in partnership with automobile manufacturers and dealers in the state to increase public awareness of and participation in the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program under Section 382.209, Health and Safety Code, as amended by this article.

(b)iiFunding for the partnership described by Subsection (a) of this section shall be used exclusively for the purpose of publicizing the program.

SECTIONi1.13.ii(a)iiThe Texas Commission on Environmental Quality shall seek to work in partnership with the steel industry and automobile dismantlers to ensure that vehicles being replaced are scrapped and that proof of scrapping is provided to the commission.

(b)iiNot later than January 1, 2008, the Texas Commission on Environmental Quality shall adopt procedures for certifying that emissions control equipment and vehicle engines have been scrapped and not resold into the marketplace and shall by rule define "emissions control equipment" and "engine," as required by Section 382.213, Health and Safety Code, as amended by this article.

ARTICLE 2.iiTEXAS EMISSIONS REDUCTION PLAN

SECTIONi2.01.iiSection 386.002, Health and Safety Code, is amended to read as follows:

Sec.i386.002.iiEXPIRATION. This chapter expires August 31, 2013 [2010].

Saturday, May 26, 2007 SENATE JOURNAL 4949


SECTIONi2.02.iiSubsection (a), Section 386.052, Health and Safety Code, is amended to read as follows:

(a)iiIn administering the plan established under this chapter and in accordance with the requirements of this chapter, the commission:

(1)iishall:

(A)i[(1)]iimanage plan funds and oversee the plan;

(B)i[(2)]iiproduce guidelines, protocols, and criteria for eligible projects;

(C)i[(3)]iidevelop methodologies for evaluating project cost-effectiveness;

(D)i[(4)]iiprepare reports regarding the progress and effectiveness of the plan; and

(E)i[(5)]iitake all appropriate and necessary actions so that emissions reductions achieved through the plan are credited by the United States Environmental Protection Agency to the appropriate emissions reduction objectives in the state implementation plan; and

(2)iimay hire staff and consultants needed to complete the commission's duties under this section and ensure timely review of applications and reimbursement of grant applicants' eligible project costs.

SECTIONi2.03.iiSubsection (d), Section 386.053, Health and Safety Code, is amended to read as follows:

(d)iiThe commission may propose revisions to the guidelines and criteria adopted under this section as necessary to improve the ability of the plan to achieve its goals. Revisions may include, among other changes, adding additional pollutants, adding stationary engines or engines used in stationary applications, adding vehicles and equipment that use fuels other than diesel, or adjusting eligible program categories, as appropriate, to ensure that incentives established under this chapter achieve the maximum possible emissions reductions. The commission shall make a proposed revision available to the public before the 30th [45th] day preceding the date of final adoption of the revision and shall hold at least one public meeting to consider public comments on the proposed revision before final adoption.

SECTIONi2.04.iiSubsection (c), Section 386.104, Health and Safety Code, is amended to read as follows:

(c)iiFor a proposed project as described by Section 386.102(b), other than a project involving a marine vessel or engine, not less than 75 percent of vehicle miles traveled or hours of operation projected for the five years immediately following the award of a grant must be projected to take place in a nonattainment area or affected county of this state. The commission may also allow vehicle travel on highways and roadways, or portions of a highway or roadway, designated by the commission and located outside a nonattainment area or affected county to count towards the percentage of use requirement in this subsection. For a proposed project involving a marine vessel or engine, the vessel or engine must be operated in the intercoastal waterways or bays adjacent to a nonattainment area or affected county of this state for a sufficient amount of time over the lifetime of the project, as determined by the commission, to meet the cost-effectiveness requirements of Section 386.105.

SECTIONi2.05.iiSubsection (a), Section 386.106, Health and Safety Code, is amended to read as follows:

4950 80th Legislature — Regular Session 68th Day


(a)iiExcept as provided by Section 386.107 and except for infrastructure projects and infrastructure purchases that are part of a broader retrofit, repower, replacement, or add-on equipment project, the commission may not award a grant for a proposed project the cost-effectiveness of which, calculated in accordance with Section 386.105 and criteria developed under that section, exceeds $15,000 [$13,000] per ton of oxides of nitrogen emissions reduced in the nonattainment area or affected county for which the project is proposed. This subsection does not restrict commission authority under other law to require emissions reductions with a cost-effectiveness that exceeds $15,000 [$13,000] per ton.

SECTIONi2.06.iiSection 386.109, Health and Safety Code, is amended to read as follows:

Sec.i386.109.iiELIGIBLE INFRASTRUCTURE PROJECTS. (a)iiThe commission may consider for funding under Section 386.108:

(1)iithe purchase and installation at a site of equipment that is designed primarily to dispense qualifying fuel, other than standard gasoline or diesel, or the purchase of on-site mobile fueling equipment;

(2)iiinfrastructure projects, including auxiliary power units, designed to dispense electricity to:

(A)iimotor vehicles;

(B)ii[and] on-road and non-road diesels; and

(C)iimarine vessels; and

(3)iia project that involves a technology that allows a vehicle to replace with electric power, while the vehicle is parked, the power normally supplied by the vehicle's internal combustion engine.

(b)iiThe commission may provide funding to other state agencies to implement projects under Subsection (a)(3), including funding for the lease, purchase, or installation of idle reduction technologies and facilities at rest areas and other public facilities on major highway transportation routes located in areas eligible for funding or for marine vessels operating on water routes eligible for funding. Funding under this subsection may include reasonable operational costs determined by the commission to be needed for the initial start-up and proper operation of the idle reduction technologies. The state agency leasing, owning, or operating the idle reduction facility constructed with funds provided under this subsection may, but is not required to, charge reasonable fees for the provision of idle reduction services provided that those fees are used to directly offset the cost of providing the services.

(c)iiIn evaluating a request for funding of an eligible infrastructure project, the commission shall encourage the use of a technology that allows a vehicle to replace with electric power, while the vehicle is parked, the power normally supplied by the vehicle's internal combustion engine at the state's ports and border crossings in affected areas.

SECTIONi2.07.iiSection 386.117, Health and Safety Code, is amended by adding Subsections (e) and (f) to read as follows:

(e)iiThe commission shall:

(1)iiinvestigate the requirements for establishing an Internet-based application process for rebate grants and report those requirements to the legislature not later than December 31, 2007; or

Saturday, May 26, 2007 SENATE JOURNAL 4951


(2)iiimplement an Internet-based application process for rebate grants not later than June 1, 2008.

(f)iiThe commission or its designee shall notify potential applicants of any changes to the rebate grant process by its e-mail list service and posting those changes on its Internet website at least 30 days before the changes become effective.

SECTIONi2.08.iiSubsection (b), Section 386.251, Health and Safety Code, is amended to read as follows:

(b)iiThe fund is administered by the commission [comptroller] for the benefit of the plan established under this chapter. The fund is exempt from the application of Section 403.095, Government Code. Interest earned on the fund shall be credited to the fund.

SECTIONi2.09.iiSubsection (a), Section 386.252, Health and Safety Code, as amended by Section 3, Chapter 766, Section 3, Chapter 1095, and Section 11, Chapter 1125, Acts of the 79th Legislature, Regular Session, 2005, is reenacted and amended to read as follows:

(a)iiMoney in the fund may be used only to implement and administer programs established under the plan and shall be allocated as follows:

(1)iifor the diesel emissions reduction incentive program, 87.5 percent of the money in the fund, of which not more than four percent may be used for the clean school bus program and not more than 10 percent may be used for on-road diesel purchase or lease incentives;

(2)iifor the new technology research and development program, 9.5 percent of the money in the fund, of which up to $250,000 is allocated for administration, up to $200,000 is allocated for a health effects study, $500,000 is to be deposited in the state treasury to the credit of the clean air account created under Section 382.0622 to supplement funding for air quality planning activities in affected counties, not less than 20 percent is to be allocated each year to support research related to air quality for the Houston-Galveston-Brazoria and Dallas-Fort Worth nonattainment areas by a nonprofit organization based in Houston of which $216,000 each year shall be contracted to the Energy Systems Laboratory at the Texas Engineering Experiment Station for the development and annual calculation of creditable statewide emissions reductions obtained through wind and other renewable energy resources for the State Implementation Plan, and the balance is to be allocated each year to a [that] nonprofit organization or an institution of higher education based in Houston to be used to implement and administer the new technology research and development program under a contract with the commission for the purpose of identifying, testing, and evaluating new emissions-reducing technologies with potential for commercialization in this state and to facilitate their certification or verification; and

(3)iifor administrative costs incurred by the commission and the laboratory, three percent of the money in the fund.

SECTIONi2.10.iiSection 387.003, Health and Safety Code, is amended by amending Subsection (a) and adding Subsections (c) through (h) to read as follows:

4952 80th Legislature — Regular Session 68th Day


(a)iiA [The] nonprofit organization or institution of higher education described by Section 386.252(a)(2), under a contract with the commission as described by that section, shall establish and administer a new technology research and development program as provided by this chapter. The commission may contract with more than one entity and may limit the amount of each grant contract accordingly.

(c)iiThe board of directors of a nonprofit organization under contract with the commission to establish and administer a new technology research and development program as provided by this chapter may not have more than 11 members, must include two persons of relevant scientific expertise to be nominated by the commission, and may not include more than four county judges selected from counties in the Houston-Galveston-Brazoria and Dallas-Fort Worth nonattainment areas. The two persons of relevant scientific expertise to be nominated by the commission may be employees or officers of the commission, provided that they do not participate in funding decisions affecting the granting of funds by the commission to a nonprofit organization on whose board they serve.

(d)iiThe commission may enter into a grant contract with an institution of higher education described by Section 386.252(a)(2) for the institution to operate a testing facility which would be available for demonstration of eligible projects receiving grants under this chapter.

(e)iiThe commission shall provide oversight as appropriate for grants provided to a nonprofit organization under this program.

(f)iiA nonprofit organization shall submit to the commission for approval a budget for the disposition of funds granted under this program.

(g)iiThe commission shall limit the use of grants for administrative costs incurred by a nonprofit organization to an amount not to exceed 10 percent of the funding provided to the nonprofit organization under this program.

(h)iiA nonprofit organization that receives grants from the commission under this program is subject to Chapters 551 and 552, Government Code.

SECTIONi2.11.iiSection 387.004, Health and Safety Code, is amended to read as follows:

Sec.i387.004.iiSOLICITATION OF NEW TECHNOLOGY PROPOSALS. The commission from time to time shall issue or contract with a nonprofit organization described by Section 386.252(a)(2) to issue specific requests for proposals (RFPs) or program opportunity notices (PONs) for technology projects to be funded under the program.

SECTIONi2.12.iiSection 387.005, Health and Safety Code, is amended to read as follows:

Sec.i387.005.iiELIGIBLE PROJECTS; PRIORITIES. (a)iiGrants awarded under this chapter shall be directed toward a balanced mix of:

(1)iiretrofit and add-on technologies and other advanced technologies that [to] reduce emissions from the existing stock of engines and vehicles targeted by the Texas emissions reduction plan;

(2)iithe establishment of a testing facility to evaluate retrofits, add-ons, advanced technologies, and fuels, or combinations of retrofits, add-ons, advanced technologies, and fuels, to determine their effectiveness in producing emissions reductions, with emphasis on the reduction of oxides of nitrogen; and

Saturday, May 26, 2007 SENATE JOURNAL 4953


(3)iiadvanced technologies for new engines and vehicles that produce very-low or zero emissions of oxides of nitrogen, including stationary and mobile fuel cells[;

[(3)iistudies to improve air quality assessment and modeling; and

[(4)iiadvanced technologies that reduce emissions from other significant sources].

(b)iiThe commission, directly or through a nonprofit organization described by Section 386.252(a)(2), shall identify and evaluate and may consider making grants for technology projects that would allow qualifying fuels to be produced from energy resources in this state. In considering projects under this subsection, the commission shall give preference to projects involving otherwise unusable energy resources in this state and producing qualifying fuels at prices lower than otherwise available and low enough to make the projects to be funded under the program economically attractive to local businesses in the area for which the project is proposed.

(c)iiIn soliciting proposals under Section 387.004 and determining how to allocate grant money available for projects under this chapter, the commission shall give special consideration to advanced technologies and retrofit or add-on projects that provide multiple benefits by reducing emissions of particulates and other air pollutants.

(d)iiA project that involves publicly or privately owned vehicles or vessels is eligible for funding under this chapter if the project meets all applicable criteria.

(e)ii[Studies authorized under Subsection (a)(3) shall be consistent with air quality research priorities identified by the commission and conducted in an independent and objective manner.

[(f)]iiIf a commissioner is an employee or owner of an entity that applies for a grant under this chapter, the commissioner, before a vote on the grant, shall disclose the fact of the commissioner's employment or ownership. The disclosure must be entered into the minutes of the meeting. The commissioner may not vote on or otherwise participate in the awarding of the grant. If the commissioner does not comply with this subsection, the entity is not eligible for the grant.

(f)iiSelection of grant recipients by a nonprofit organization described by Section 386.252(a)(2) under contract with the commission for the purpose of establishing and administering a new technology research and development program as provided by this chapter is subject to the commission's review and to the other requirements of this chapter. A grant contract under this chapter using funds described by Section 386.252 may not be made by a nonprofit organization if the commission or executive director of the commission does not consent to the grant or contract.

SECTIONi2.13.iiSubsection (d), Section 151.0515, Tax Code, is amended to read as follows:

(d)iiThis section expires August 31, 2013 [September 30, 2010].

SECTIONi2.14.iiSubsection (c), Section 152.0215, Tax Code, is amended to read as follows:

(c)iiThis section expires August 31, 2013 [September 30, 2010].

SECTIONi2.15.iiSubsections (a), (b), and (b-1), Section 501.138, Transportation Code, are amended to read as follows:

4954 80th Legislature — Regular Session 68th Day


(a)iiAn applicant for a certificate of title, other than the state or a political subdivision of the state, must pay the county assessor-collector a fee of:

(1)ii$33 if the applicant's residence is a county located within a nonattainment area as defined under Section 107(d) of the federal Clean Air Act (42 U.S.C. Section 7407), as amended, or is an affected county, as defined by Section 386.001, Health and Safety Code; or

(2)ii$28 if the applicant's residence is any other county[; or

[(3)iion or after September 1, 2010, $28 regardless of the county in which the applicant resides].

(b)iiThe county assessor-collector shall send:

(1)ii$5 of the fee to the county treasurer for deposit in the officers' salary fund;

(2)ii$8 of the fee to the department:

(A)iitogether with the application within the time prescribed by Section 501.023; or

(B)iiif the fee is deposited in an interest-bearing account or certificate in the county depository or invested in an investment authorized by Subchapter A, Chapter 2256, Government Code, not later than the 35th day after the date on which the fee is received; and

(3)iithe following amount to the comptroller at the time and in the manner prescribed by the comptroller:

(A)ii$20 of the fee if the applicant's residence is a county located within a nonattainment area as defined under Section 107(d) of the federal Clean Air Act (42 U.S.C. Section 7407), as amended, or is an affected county, as defined by Section 386.001, Health and Safety Code; or

(B)ii$15 of the fee if the applicant's residence is any other county[; or

[(C)iion or after September 1, 2010, $15 regardless of the county in which the applicant resides].

(b-1)iiFees collected under Subsection (b) to be sent to the comptroller shall be deposited as follows:

(1)iibefore September 1, 2008, to the credit of the Texas emissions reduction plan fund; and

(2)iion or after September 1, 2008, to the credit of the Texas Mobility Fund, except that $5 of each fee imposed under Subsection (a)(1) and deposited on or after September 1, 2008, and before September 1, 2015 [2010], shall be deposited to the credit of the Texas emissions reduction plan fund.

SECTIONi2.16.iiSubsection (b-3), Section 501.138, Transportation Code, is amended to read as follows:

(b-3)iiThis subsection and Subsection (b-2) expire September 1, 2015 i[2010].

SECTIONi2.17.iiSubsection (c), Section 502.1675, Transportation Code, is amended to read as follows:

(c)iiThis section expires August 31, 2013 [2010].

SECTIONi2.18.iiSubsection (c), Section 548.5055, Transportation Code, is amended to read as follows:

(c)iiThis section expires August 31, 2013 [2010].

Saturday, May 26, 2007 SENATE JOURNAL 4955


SECTIONi2.19.iiSection 12, Chapter 1125, Acts of the 79th Legislature, Regular Session, 2005, amending Subsection (a), Section 386.252, Health and Safety Code, is repealed.

ARTICLE 3.iiENERGY EFFICIENCY

SECTIONi3.01.iiSection 388.003, Health and Safety Code, is amended by adding Subsections (b-1) and (b-2) to read as follows:

(b-1)iiIf the State Energy Conservation Office determines, based on written recommendations from the laboratory, that the latest published edition of the International Residential Code energy efficiency provisions or the latest published edition of the International Energy Conservation Code will result in residential or commercial energy efficiency and air quality that is equivalent to or better than the energy efficiency and air quality achievable under the editions adopted under Subsection (a) or (b), the office may by rule adopt the equivalent or more stringent editions and substitute them for the energy codes described by Subsection (a) or (b). The rule, if adopted, shall establish an effective date for the new energy codes but not earlier than nine months after the date of adoption. The laboratory shall make its recommendations not later than six months after publication of new editions at the end of each three-year code development cycle of the International Residential Code and the International Energy Conservation Code.

(b-2)iiThe State Energy Conservation Office by rule shall establish a procedure for persons who have an interest in the adoption of energy codes under Subsection (b-1) to have an opportunity to comment on the codes under consideration and to have the commentary considered by the laboratory in developing its recommendations. The office shall consider persons who have an interest in adoption of those codes to include:

(1)iicommercial and residential builders, architects and engineers;

(2)iimunicipal, county, and other local government authorities; and

(3)iienvironmental groups.

SECTIONi3.02.iiSection 388.005, Health and Safety Code, is amended to read as follows:

Sec.i388.005.iiENERGY EFFICIENCY PROGRAMS IN INSTITUTIONS OF HIGHER EDUCATION, STATE AGENCIES, AND CERTAIN POLITICAL SUBDIVISIONS. (a)iiIn this section:

(1)ii"Institution of higher education" includes an institution of higher education as defined by Section 61.003, Education Code, and a private institution of higher education that receives funding from the state.

(2)ii"Political[, "political] subdivision" means:

(A)i[(1)]iian affected county; or

(B)i[(2)]iiany political subdivision in a nonattainment area or in an affected county other than:

(i) [(A)]iia school district; or

(ii) [(B)]iia district as defined by Section 36.001 or 49.001, Water Code, that had a total annual electricity expense of less than $200,000 in the previous fiscal year of the district.

4956 80th Legislature — Regular Session 68th Day


(3)ii"State agency" means a department, commission, board, office, council, or other agency in the executive branch of government that is created by the constitution or a statute of this state and has authority not limited to a geographical portion of the state.

(b)iiEach political subdivision, institution of higher education, or state agency shall implement all energy efficiency measures that meet the standards established for a contract for energy conservation measures under Section 302.004(b), Local Government Code, in order to reduce electricity consumption by the existing facilities of the entity [the political subdivision].

(c)iiEach political subdivision, institution of higher education, or state agency shall establish a goal to reduce the electric consumption by the entity [political subdivision] by five percent each year for six [five] years, beginning September 1, 2007 [January 1, 2002].

(d)iiA political subdivision, institution of higher education, or state agency that does not attain the goals under Subsection (c) must include in the report required by Subsection (e) justification that the entity [political subdivision] has already implemented all available measures. An entity that submits a report under this subsection indicating it has already implemented all available measures is exempt from the annual reporting requirement of Subsection (e) if a subsequent report would indicate no change in status. An entity may be required to provide notice that it is exempt to the State Energy Conservation Office.

(e)iiA political subdivision, institution of higher education, or state agency annually shall report to the State Energy Conservation Office, on forms provided by that office, regarding the entity's [political subdivision's] efforts and progress under this section. The State Energy Conservation Office shall provide assistance and information to the entity [political subdivisions] to help it [the political subdivisions] meet the goals set under this section.

(f)iiThis section does not apply to an institution of higher education or a state agency if:

(1)iithe State Energy Conservation Office determines that, before Septemberi1, 2007, the institution or agency adopted a plan for conserving energy under which the institution or agency has set a percentage goal for reducing electric consumption; and

(2)iithe institution or agency submits reports on its conservation plan not less than quarterly to the governor, the Legislative Budget Board, and the State Energy Conservation Office.

SECTIONi3.03.iiSubsection (b), Section 44.901, Education Code, is amended to read as follows:

(b)iiThe board of trustees of a school district shall establish a goal to reduce the annual electric consumption by five percent each year for six years, beginning Septemberi1, 2007. The board of trustees of a school district may enter into an energy savings performance contract in accordance with this section.

SECTIONi3.04.iiSubsection (d), Section 2155.068, Government Code, is amended to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4957


(d)iiAs part of the standards and specifications program, the commission shall review contracts for opportunities to recycle waste produced at state buildings, shall develop and update a list of equipment and appliances that meet the energy efficiency standards of Section 2158.301, and shall assist state agencies in selecting products under that section as appropriate.

SECTIONi3.05.iiChapter 2158, Government Code, is amended by adding Subchapter F to read as follows:

SUBCHAPTER F. ENERGY AND EFFICIENCY STANDARDS

FOR EQUIPMENT AND APPLIANCES

Sec.i2158.301.iiENERGY CONSERVATION. If available and cost effective, the commission or another state agency shall purchase equipment and appliances for state use that meet or exceed the federal Energy Star standards designated by the United States Environmental Protection Agency and the United States Department of Energy.

SECTIONi3.06.ii(a)iiThe State Energy Conservation Office shall adopt rules implementing a procedure for stakeholder participation as required under Subsection (b-2), Section 388.003, Health and Safety Code, as added by this article, as soon as practicable after the effective date of this Act.

(b)iiThe State Energy Conservation Office shall adopt rules as necessary to implement Subsection (b), Section 44.901, Education Code, as amended by this article, as soon as practicable after the effective date of this Act.

SECTIONi3.07.ii(a)iiThe energy conservation standards for equipment and appliances under Section 2158.301, Government Code, as added by this article, apply to a purchase by a state agency on or after the effective date of this Act.

(b)iiThe Texas Building and Procurement Commission shall develop a list of equipment and appliances under Section 2155.068, Government Code, as amended by this article, as soon as practicable after the effective date of this Act.

ARTICLE 4. IDLING OF MOTOR VEHICLES

SECTIONi4.01.iiSubsections (b), (c), and (d), Section 382.0191, Health and Safety Code, are amended to read as follows:

(b)iiThe commission may not prohibit or limit the idling of a motor vehicle when idling is necessary to power a heater or air conditioner while a driver is using the vehicle's sleeper berth for a government-mandated rest period. Idling is not necessary to power a heater or air conditioner if the vehicle is within two miles of a facility offering external heating and air conditioning connections at a time when those connections are available.

(c)iiNo driver using the vehicle's sleeper berth may idle the vehicle in a residential area as defined by Section 244.001, Local Government Code, or in a school zone or within 1,000 feet of a hospital or a public school during its hours of operation. An offense under this subsection shall be punishable by a fine not to exceed $500.

(d)iiThis section expires September 1, 2009 [2007].

ARTICLE 5. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY NOTIFICATION REQUIREMENTS

SECTIONi5.01.iiSection 382.0516, Health and Safety Code, is amended to read as follows:

4958 80th Legislature — Regular Session 68th Day


Sec.i382.0516.iiNOTICE TO STATE SENATOR, STATE [AND] REPRESENTATIVE, AND CERTAIN LOCAL OFFICIALS. (a)iiOn receiving an application for a construction permit or an amendment to a construction permit, a special permit, or an operating permit for a facility that may emit air contaminants, the commission shall send notice of the application to the state senator and representative who represent the area in which the facility is or will be located.

(b)iiIn addition to the notice required by Subsection (a), for an application that relates to an existing or proposed concrete batch plant, on receiving an application for a construction permit, an amendment to a construction permit, an operating permit, or an authorization to use a standard permit, the commission shall send notice of the application:

(1)iito the county judge of the county in which the facility is or will be located; and

(2)iiif the facility is or will be located in a municipality or the extraterritorial jurisdiction of a municipality, to the presiding officer of the municipality's governing body.

SECTIONi5.02.iiThe notice provisions under Section 382.0516, Health and Safety Code, as amended by this article, apply only to an application for a permit that is submitted to the Texas Commission on Environmental Quality on or after the effective date of this article.

SECTIONi5.03.iiThis article takes effect September 1, 2007.

ARTICLE 6. ENFORCEMENT ACTIONS BASED ON INFORMATION PROVIDED BY A PERSON

SECTIONi6.01.iiSubchapter A, Chapter 7, Water Code, is amended by adding Section 7.00251 to read as follows:

Sec.i7.00251.iiINITIATION OF CERTAIN CLEAN AIR ACT ENFORCEMENT ACTIONS USING INFORMATION PROVIDED BY A PERSON. If the commission determines that there are multiple violations based on information it receives as required by Title V of the federal Clean Air Act (42 U.S.C. Section 7661 et seq.) from a person, as defined in Section 382.003, Health and Safety Code, only those that require initiation of formal enforcement will be included in any proposed enforcement action. For all other violations that do not require initiation of formal enforcement, the commission may not include in the enforcement action the following:

(1)iiviolations that are not repeat violations due to the same root cause from two consecutive investigations within the most recent five-year period; or

(2)iiviolations that have been corrected within the time frame specified by the commission or for which the facility has not had the time specified by the commission to correct the violations.

ARTICLE 7. SOLAR ENERGY DEMONSTRATION PROJECT

SECTIONi7.01.iiSubchapter Z, Chapter 39, Utilities Code, is amended by adding Section 39.9051 to read as follows:

Sec.i39.9051.iiENERGY EFFICIENCY DEMONSTRATION PROJECTS FOR SOLAR ELECTRIC SYSTEM; GRANT PROGRAM. (a)iiThe commission by rule shall establish grant programs for:

Saturday, May 26, 2007 SENATE JOURNAL 4959


(1)iia demonstration project for installation of solar electric systems for new residential subdivisions;

(2)iia demonstration project for installation of solar electric systems for new or established affordable housing for persons with low incomes; and

(3)iia demonstration project for installation of solar electric systems for not more than three small businesses.

(b)iiTo qualify for a grant under this section, the solar electric system must be a device that:

(1)iigenerates electricity using solar resources;

(2)iihas a generating capacity of not more than 1,000 kilowatts; and

(3)iiis installed with a manufacturer's warranty against breakdown or undue degradation for a period of at least five years.

(c)iiA demonstration project grant program established under this section must provide for full or partial payment of the cost of equipment and installation for the solar electric systems. The commission shall establish for each grant program a competitive bidding process for grant applicants. The commission shall consider the value of funding demonstration projects in different parts of this state, after considering the demographic and geographic diversity of this state.

(d)iiTo qualify for a grant under Subsection (a)(1), the applicant:

(1)iimust be a person whose primary business activity is the building of residential housing developments; and

(2)iimust have installed or must be contractually obligated to install qualifying solar electric systems in each residence constructed in a residential subdivision.

(e)iiTo qualify for a grant under Subsection (a)(2), the applicant must have installed or be contractually obligated to install a qualifying solar electric system for residential real property:

(1)iiappraised in accordance with Section 23.21, Tax Code, as affordable housing property; or

(2)iisubject to a contractual obligation that the property will be appraised in accordance with Section 23.21, Tax Code, as affordable housing property within a reasonable time after the grant is received.

(f)iiTo qualify for a grant under Subsection (a)(3), the applicant must be a small business or owner of a small business that meets qualifications adopted by the commission after consideration of federal Small Business Administration standards for qualification for loans from that administration.

(g)iiThe commission shall issue a report to the governor, lieutenant governor, and speaker of the house of representatives not later than December 1 of each even-numbered year summarizing the status of the grant programs established under Subsection (a). The report must include the amount of money granted to each demonstration project and an evaluation of whether the projects demonstrate the economic and ecologic viability of solar electric system installations.

(h)iiThis section expires December 31, 2010.

4960 80th Legislature — Regular Session 68th Day


SECTIONi7.02.ii(a)iiThe Public Utility Commission of Texas may not spend money to implement a demonstration project grant program established under Section 39.9051, Utilities Code, as added by this article, except for money described by Subsection (b) of this section that is appropriated to the commission.

(b)iiThe Public Utility Commission of Texas may solicit and accept gifts, grants, and other donations from any source to carry out the demonstration grant program established under Section 39.9051, Utilities Code, as added by this article.

(c)iiThis section expires December 31, 2010.

ARTICLE 8.iiEFFECTIVE DATE

SECTIONi8.01.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

The Conference Committee Report on SBi12 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2093

Senator Carona submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2093 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

CARONA HILL
BRIMER KRUSEE
OGDEN PHILLIPS
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2093 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3826

Senator Zaffirini submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Saturday, May 26, 2007 SENATE JOURNAL 4961


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3826 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

ZAFFIRINI MORRISON
AVERITT F. BROWN
SHAPIRO MCCALL
VAN DE PUTTE D. HOWARD
PATRICK
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3826 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 892

Senator Fraser submitted the following Conference Committee Report:

Austin, Texas

May 24, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi892 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

FRASER HILDERBRAN
WENTWORTH CORTE
WEST FARABEE
HEFLIN
On the part of the Senate On the part of the House

The Conference Committee Report on HBi892 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2265

Senator Averitt submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

4962 80th Legislature — Regular Session 68th Day


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2265 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

AVERITT HAGGERTY
CARONA CHAVEZ
LUCIO PICKETT
NELSON QUINTANILLA
VANiDEiPUTTE TALTON
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2265 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3275

Senator Hegar submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3275 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

HEGAR MILLER
CARONA O'DAY
JANEK CALLEGARI
PATRICK ESCOBAR
WILLIAMS PENA
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3275 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3732

Senator Averitt submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Saturday, May 26, 2007 SENATE JOURNAL 4963


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3732 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

AVERITT HARDCASTLE
NICHOLS DARBY
NELSON R. COOK
SHAPLEIGH DESHOTEL
SOLOMONS
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3732 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3314

Senator Duncan submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3314 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

DUNCAN KEFFER
OGDEN CROWNOVER
WHITMIRE PENA
WILLIAMS RITTER
ZAFFIRINI BONNEN
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3314 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3315

Senator Duncan submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

4964 80th Legislature — Regular Session 68th Day


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3315 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

DUNCAN KEFFER
OGDEN Y. DAVIS
WHITMIRE MCREYNOLDS
WILLIAMS PAXTON
ZAFFIRINI R. COOK
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3315 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3319

Senator Duncan submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3319 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

DUNCAN KEFFER
OGDEN Y. DAVIS
WHITMIRE BONNEN
WILLIAMS HILL
ZAFFIRINI RITTER
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3319 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 539

Senator West submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Saturday, May 26, 2007 SENATE JOURNAL 4965


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi539 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

WEST W. SMITH
PATRICK COLEMAN
LUCIO HEFLIN
NICHOLS C. HOWARD
WENTWORTH WEST
On the part of the Senate On the part of the House

The Conference Committee Report on HBi539 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 4

Senator Averitt submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi4 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

AVERITT PUENTE
DEUELL CREIGHTON
URESTI GUILLEN
LAUBENBERG
MCCLENDON
On the part of the Senate On the part of the House

The Conference Committee Report on HBi4 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 406

Senator Wentworth submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

4966 80th Legislature — Regular Session 68th Day


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi406 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

WENTWORTH GONZALES
CARONA GOOLSBY
DUNCAN HOPSON
HINOJOSA HUGHES
WATSON
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to a motion for the recusal or disqualification of a statutory probate court judge.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubsections (f), (g), (i), and (k), Section 25.00255, Government Code, are amended to read as follows:

(f)iiBefore further proceedings in a case in which a motion for the recusal or disqualification of a judge has been filed, the judge shall:

(1)iirecuse himself or herself; or

(2)iirequest the assignment of [that the presiding judge of the statutory probate courts assign] a judge to hear the motion by forwarding the motion and opposing and concurring statements to the presiding judge of the statutory probate courts as provided by Subsection (h).

(g)iiA judge who recuses himself or herself:

(1)iishall enter an order of recusal and request that the presiding judge of the statutory probate courts request the assignment of [assign] a judge to hear the motion for recusal or disqualification as provided by Subsection (i); and

(2)iimay not take other action in the case except for good cause stated in the order in which the action is taken.

(i)iiAfter receiving a request under Subsection (g) or (h), the presiding judge of the statutory probate courts shall immediately forward the request to the presiding judge of the administrative judicial district and request that the presiding judge of the administrative judicial district assign a judge to hear the motion for recusal or disqualification. On receipt of the request, the presiding judge of the administrative judicial district shall:

(1)iiimmediately set a hearing before himself or herself or a judge designated by the presiding judge, except that the presiding judge may not designate a judge of a statutory probate court in the same county as the statutory probate court served by the judge who is the subject of the motion;

(2)iicause notice of the hearing to be given to all parties or their counsel to the case; and

Saturday, May 26, 2007 SENATE JOURNAL 4967


(3)iimake other orders, including orders for interim or ancillary relief, in the pending case.

(k)iiA party may file a motion for sanctions alleging that another party in the case filed a motion for the recusal or disqualification of a judge solely to delay the case and without sufficient cause. The presiding judge of the administrative judicial district or the judge assigned [by the presiding judge] to hear the motion for recusal may approve a motion for sanctions authorized by Rule 215.2(b), Texas Rules of Civil Procedure.

SECTIONi2.iiSubchapter B, Chapter 25, Government Code, is amended by adding Section 25.00256 to read as follows:

Sec.i25.00256.iiTERTIARY RECUSAL MOTION AGAINST JUDGE. (a)iiIn this section, "tertiary recusal motion" means a third or subsequent motion for recusal or disqualification filed in a case against any statutory probate court judge by the same party. The term includes any third or subsequent motion filed in the case by the same party, regardless of whether that motion is filed against a different judge than the judge or judges against whom the previous motions for recusal or disqualification were filed.

(b)iiA judge who declines recusal after a tertiary recusal motion is filed shall comply with applicable rules of procedure for recusal and disqualification except that the judge shall continue to:

(1)iipreside over the case;

(2)iisign orders in the case; and

(3)iimove the case to final disposition as though a tertiary recusal motion had not been filed.

(c)iiA judge hearing a tertiary recusal motion against another judge who denies the motion shall award reasonable and necessary attorney's fees and costs to the party opposing the motion. The party making the motion and the attorney for the party are jointly and severally liable for the award of fees and costs. The fees and costs must be paid before the 31st day after the date the order denying the tertiary recusal motion is rendered unless the order is properly superseded.

(d)iiThe denial of a tertiary recusal motion is only reviewable on appeal from final judgment.

(e)iiIf a tertiary recusal motion is finally sustained, the new judge for the case shall vacate all orders signed by the sitting judge during the pendency of the tertiary recusal motion.

SECTIONi3.iiSubsection (a), Section 30.016, Civil Practice and Remedies Code, is amended to read as follows:

(a)iiIn this section, "tertiary recusal motion" means a third or subsequent motion for recusal or disqualification filed against a district court[, statutory probate court,] or statutory county court judge by the same party in a case.

SECTIONi4.iiThe changes in law made by this Act apply only to a motion for recusal or disqualification of a judge that is filed on or after the effective date of this Act. A motion for recusal or disqualification of a judge filed before the effective date of this Act is governed by the law in effect on the date the motion was filed, and the former law is continued in effect for that purpose.

SECTIONi5.iiThis Act takes effect September 1, 2007.

The Conference Committee Report on SBi406 was filed with the Secretary of the Senate.

4968 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 109

Senator Averitt submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi109 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

AVERITT TURNER
DEUELL HUGHES
HINOJOSA S. KING
DUKES
J. DAVIS
On the part of the Senate On the part of the House

The Conference Committee Report on HBi109 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3382

Senator Uresti submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3382 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

URESTI NAISHTAT
JANEK BERMAN
SHAPIRO D. HOWARD
WILLIAMS LEIBOWITZ
ZAFFIRINI MCCALL
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3382 was filed with the Secretary of the Senate.

Saturday, May 26, 2007 SENATE JOURNAL 4969


CONFERENCE COMMITTEE REPORT ON

SENATE BILL 23

Senator Nelson submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi23 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

NELSON SMITHEE
DEUELL EILAND
WILLIAMS HANCOCK
WHITMIRE
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating relating to promoting the purchase and availability of health coverage.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. TEXLINK TO HEALTH COVERAGE PROGRAM

SECTIONi1.01.iiChapter 524, Insurance Code, is amended to read as follows:

CHAPTER 524. TEXLINK TO HEALTH COVERAGE [AWARENESS AND EDUCATION] PROGRAM

SUBCHAPTER A. GENERAL PROVISIONS

Sec.i524.001.iiDEFINITIONS. In this chapter:

(1)ii"Division" means the division of the department that administers the TexLink to Health Coverage Program.

(2)ii"Program" means the TexLink to Health Coverage Program established in accordance with this chapter.

Sec.i524.002.iiDIVISION RESPONSIBILITIES. Under the direction of the commissioner, the division implements this chapter.

Sec.i524.003.iiTEXLINK TO HEALTH COVERAGE PROGRAM ESTABLISHED. (a)iiThe department shall develop and implement a health coverage [public awareness and education] program that complies with this chapter. The program must:

(1)iieducate the public about the importance and value of health coverage;

(2)iipromote personal responsibility for health care through the purchase of health coverage;

4970 80th Legislature — Regular Session 68th Day


(3)iiassist small employers, individuals, and others seeking to purchase health coverage with technical information necessary to understand available health coverage products;

(4)iipromote and facilitate the development and availability of new health coverage options;

(5)iiincrease public awareness of health coverage options available in this state; and

(6)i[(2)iieducate the public on the value of health coverage; and

[(3)]iiprovide information on health coverage options, including health savings accounts and compatible high deductible health benefit plans.

(b)iiThe program must include a public awareness and education component.

[Sections 524.004-524.050 reserved for expansion]

SUBCHAPTER B. PUBLIC AWARENESS AND EDUCATION

Sec.i524.051.iiINFORMATION ABOUT SPECIFIC HEALTH BENEFIT PLAN ISSUERS. In materials produced for the program, the division [(b) The department] may include information about specific health benefit plan [coverage] issuers but may not favor or endorse one particular issuer over another.

Sec.i524.052.ii[524.002.] PUBLIC SERVICE ANNOUNCEMENTS. The division [department] shall develop and make public service announcements to educate consumers and employers about the availability of health coverage in this state.

Sec.i524.053.ii[524.003.] INTERNET WEBSITE; PRINTED MATERIALS; NEWSLETTER [PUBLIC EDUCATION]. (a)iiThe division [department] shall develop an Internet website and printed materials designed to educate small employers, individuals, and others seeking to purchase health coverage [the public] about [the availability of] health coverage in accordance with Section 524.003(a)i[this state, including information about health savings accounts and compatible high deductible health benefitiplans].

(b)iiThe division shall make the printed materials produced under the program available to small employers, individuals, and others seeking to purchase health coverage. The division may:

(1)iidistribute the printed materials through facilities such as libraries, health care facilities, and schools as well as other venues the division selects; and

(2)iiuse other distribution methods the division selects.

(c)iiThe division may produce a newsletter to provide updated information about health coverage to subscribers who elect to receive the newsletter. The division may:

(1)iiproduce a newsletter under this subsection for small employers, for individuals, or for other purchasers of health coverage;

(2)iidistribute the newsletter on a monthly, quarterly, or other basis; and

(3)iidistribute the newsletter as a printed document or electronically.

Sec.i524.054.iiTOLL-FREE TELEPHONE HOTLINE; ACCESS TO INFORMATION. (a)iiThe division may operate a toll-free telephone hotline to respond to inquiries and provide information and technical assistance concerning health coverage products.

Saturday, May 26, 2007 SENATE JOURNAL 4971


(b)iiThe Health and Human Services Commission, through its 2-1-1 telephone number for access to human services, may disseminate information regarding health coverage products provided to the commission by the department and may refer inquiries regarding health coverage products to the toll-free telephone hotline. The department may provide information to the Health and Human Services Commission as necessary to implement this subsection.

Sec.i524.055.iiEDUCATION FOR HIGH SCHOOL STUDENTS. (a)iiThe division may develop educational materials and a curriculum to be used in high school classes that educate students about:

(1)iithe importance and value of health coverage;

(2)iicomparing health benefit plans; and

(3)iiunderstanding basic provisions contained in health benefit plans.

(b)iiThe division may consult with the Texas Education Agency in developing educational materials and a curriculum under this section.

Sec.i524.056.iiHEALTH COVERAGE FAIRS. (a)iiThe division may conduct health coverage fairs to provide small employers, individuals, and others seeking to purchase health coverage the opportunity to obtain information about health coverage from division employees and from health benefit plan issuers and agents that elect to participate.

(b)iiThe division shall seek to obtain funding for health coverage fairs conducted under this section through gifts and grants obtained in accordance with Subchapter D.

Sec.i524.057.iiCOMMUNITY EVENTS. The division may participate in events held in this state to promote awareness of the importance and value of health coverage and to educate small employers, individuals, and others seeking to purchase health coverage about health coverage in accordance with Section 524.003(a).

Sec.i524.058.iiHEALTH COVERAGE PROVIDED THROUGH COLLEGES AND UNIVERSITIES. The division may cooperate with a public or private college or university to promote enrollment in health coverage programs sponsored by or through the college or university.

Sec.i524.059.iiSUPPORT FOR COMMUNITY-BASED PROJECTS. The division may provide support and assistance to individuals and organizations seeking to develop community-based health coverage plans for uninsured individuals.

Sec.i524.060.iiOTHER EDUCATION. The division may [department shall] provide other appropriate education to the public regarding health coverage and the importance and value of health coverage in accordance with Section 524.003(a).

Sec.i524.061.ii[524.004.] TASK FORCE. (a)iiThe commissioner may [shall] appoint a task force to make recommendations regarding the division's duties under this subchapter [health coverage public awareness and education program]. If appointed, the [The] task force must be [is] composed of:

(1)iione representative from each of the following groups or entities:

(A)iihealth [benefit] coverage consumers;

(B)iismall employers;

(C)iiemployers generally;

(D)iiinsurance agents;

(E)iithe office of public insurance counsel;

(F)iithe Texas Health Insurance Risk Pool;

4972 80th Legislature — Regular Session 68th Day


(G)iiphysicians;

(H)iiadvanced practice nurses;

(I)iihospital trade associations; and

(J)iimedical units of institutions of higher education;

(2)iia representative of the Health and Human Services Commission responsible for programs under Medicaid and the children's health insurance program; and

(3)iione or more representatives of health benefit plan issuers.

(b)iiIn addition to the individuals listed in Subsection (a), the commissioner may select to serve on any task force one or more individuals with experience in public relations, marketing, or another related field of professional services.

(c)iiThe division may [department shall] consult the task force regarding the content for the public service announcements, Internet website, printed materials, and other educational materials required or authorized by this subchapter [chapter]. The commissioner has authority to make final decisions as to what the program's materials will contain.

[Sections 524.062-524.100 reserved for expansion]

SUBCHAPTER C. ASSISTANCE FOR CERTAIN BUSINESSES

Sec.i524.101.iiFEDERAL TAX "TOOL KIT" FOR CERTAIN BUSINESSES. The division may produce materials that provide information about obtaining health coverage in a manner that qualifies for favorable treatment under federal tax laws.

Sec.i524.102.iiASSISTANCE FOR SMALL EMPLOYERS AND SINGLE-EMPLOYEE BUSINESSES. Division staff may respond to telephone inquiries regarding health coverage options for small employers and single-employee businesses and may speak at events to provide information about health coverage options for small employers and single-employee businesses and about the importance and value of health coverage.

Sec.i524.103.iiCOOPERATIVES FOR SMALL AND LARGE EMPLOYERS. The division may provide information regarding the formation of or participation in private purchasing cooperatives and health group cooperatives in accordance with Subchapter B, Chapter 1501.

Sec.i524.104.iiACCOUNTANT. The division may consult an accountant with experience in federal tax law and the purchase of group health coverage as necessary to implement this subchapter.

[Sections 524.105-524.150 reserved for expansion]

SUBCHAPTER D. FUNDING

Sec.i524.151i[524.005].iiFUNDING. The department may accept gifts and grants from any party, including a health benefit plan issuer or a foundation associated with a health benefit plan issuer, to assist with funding the program. The department shall adopt rules governing acceptance of donations that are consistent with Chapter 575, Government Code. Before adopting rules under this section [subsection], the department shall:

(1)iisubmit the proposed rules to the Texas Ethics Commission for review; and

(2)iiconsider the commission's recommendations regarding the regulations.

Saturday, May 26, 2007 SENATE JOURNAL 4973


ARTICLE 2. CHILDREN'S HEALTH BENEFIT PLAN FOR SMALL EMPLOYERS

SECTIONi2.01.iiSection 1501.002, Insurance Code, is amended by adding Subdivision (1-a) and amending Subdivision (15) to read as follows:

(1-a)ii"Children's health benefit plan" means a health benefit plan offered in accordance with Section 1501.2525.

(15)ii"Small employer health benefit plan" means a health benefit plan developed by the commissioner under Subchapter F or any other health benefit plan offered to a small employer in accordance with Section 1501.252(c) or 1501.255. The term includes a children's health benefit plan.

SECTIONi2.02.iiSection 1501.003, Insurance Code, is amended to read as follows:

Sec.i1501.003.iiAPPLICABILITY: SMALL EMPLOYER HEALTH BENEFIT PLANS. (a)iiAn individual or group health benefit plan is a small employer health benefit plan subject to Subchapters C-H if it provides health care benefits covering two or more eligible employees of a small employer and:

(1)iithe employer pays a portion of the premium or benefits;

(2)iithe employer or a covered individual treats the health benefit plan as part of a plan or program for purposes of Section 106 or 162, Internal Revenue Code of 1986 (26 U.S.C. Section 106 or 162); or

(3)iithe health benefit plan is an employee welfare benefit plan under 29 C.F.R. Section 2510.3-1(j).

(b)iiA children's health benefit plan is a small employer benefit plan and, except as specifically provided by Section 1501.2525, is subject to Subchapters C-H in the same manner as any other small employer health benefit plan.

SECTIONi2.03.iiSubsection (b), Section 1501.154, Insurance Code, is amended to read as follows:

(b)iiIf a small employer offers multiple health benefit plans, the collective participation in those plans, including any children's health benefit plan, must be at least:

(1)ii75 percent of the employer's eligible employees; or

(2)iiif applicable, the lower participation level offered by the small employer health benefit plan issuer under Section 1501.155.

SECTIONi2.04.iiSubchapter F, Chapter 1501, Insurance Code, is amended by adding Section 1501.2525 to read as follows:

Sec.i1501.2525.iiCHILDREN'S HEALTH BENEFIT PLAN. (a)iiA small employer health benefit plan issuer may offer to a small employer a children's health benefit plan in accordance with this section.

(b)iiA children's health benefit plan provides coverage to children younger than 25 years of age:

(1)iiwho are dependents of eligible employees; and

(2)iiwhose family income is at or below 400 percent of the federal poverty level as determined by rules adopted by the commissioner.

(c)iiA children's health benefit plan may not provide coverage to an eligible employee or the spouse of an eligible employee.

4974 80th Legislature — Regular Session 68th Day


(d)iiThe commissioner by rule shall adopt minimum benefits required to be provided under a children's health benefit plan. This subchapter applies to a children's health benefit plan except to the extent the commissioner by rule determines that a provision of this subchapter is inappropriate as applied to a children's health benefit plan.

SECTIONi2.05.iiSubchapter B, Chapter 1502, Insurance Code, is amended by adding Section 1502.054 to read as follows:

Sec.i1502.054.iiINAPPLICABILITY OF OTHER LAW. A children's health benefit plan offered under this chapter is not subject to Section 1501.2525.

SECTIONi2.06.iiThe commissioner of insurance shall adopt any rules necessary to implement the change in law made by this article not later than December 1, 2007. A small employer health benefit plan issuer may not offer a children's health benefit plan under Section 1501.2525, Insurance Code, as added by this article, before January 1, 2008.

ARTICLE 3. SPECIALTY CERTIFICATION FOR CERTAIN LIFE, ACCIDENT, AND HEALTH AGENTS

SECTIONi3.01.iiChapter 4054, Insurance Code, is amended by adding Subchapter G to read as follows:

SUBCHAPTER G. SPECIALTY CERTIFICATION FOR AGENTS SERVING CERTAIN EMPLOYER GROUPS

Sec.i4054.301.iiCERTIFICATION PROGRAM. The department shall establish a voluntary specialty certification program for individuals who market small employer health benefit plans in accordance with Chapter 1501.

Sec.i4054.302.iiQUALIFICATIONS. (a)iiTo be eligible to receive a specialty certification under this subchapter, an individual must:

(1)iihold a general life, accident, and health license under this chapter;

(2)iisatisfy the requirements of this subchapter; and

(3)iisubmit evidence of completion of training to the department in the manner prescribed by the commissioner.

(b)iiTo maintain a specialty certification under this subchapter, an individual must continue to hold a general life, accident, and health license under this chapter.

Sec.i4054.303.iiTRAINING. (a)iiTo be certified under this subchapter, an individual must first complete training in the law, including department rules, applicable to small employer health benefit plans offered under Chapter 1501.

(b)iiAn individual seeking specialty certification under this subchapter must complete a course applicable to small employer health benefit plans under Chapter 1501, as prescribed and approved by the commissioner. Except as provided by Subsection (c), an individual is not eligible for the specialty certification unless, on completion of the course, it is certified to the commissioner as required by the department that the individual has:

(1)iicompleted the course; and

(2)iipassed an examination testing the individual's knowledge and qualification.

Saturday, May 26, 2007 SENATE JOURNAL 4975


(c)iiAn individual seeking specialty certification under this chapter is not required to complete the course and examination required by Subsection (b) if the individual demonstrates to the department, in the manner prescribed by the department, that the individual holds a designation as:

(1)iia Registered Health Underwriter (RHU);

(2)iia Certified Employee Benefit Specialist (CEBS); or

(3)iia Registered Employee Benefits Consultant (REBC).

Sec.i4054.304.iiCONTINUING EDUCATION REQUIREMENTS. (a)iiTo renew a specialty certification under this subchapter, the individual must complete five hours of continuing education applicable to small employer health benefit plans during the two-year certification period.

(b)iiEach hour of continuing education completed in accordance with this section may be used to satisfy an hour of a continuing education requirement otherwise applicable to the agent under this title.

Sec.i4054.305.iiOFFER OF SERVICES TO ALL GROUP SIZES. To hold a specialty certification under this subchapter, an individual must agree to market small employer health benefit plans to small employers that satisfy the requirements of Chapter 1501 without regard to the number of employees to be covered under the plan.

Sec.i4054.306.iiADVERTISING. An individual who holds a specialty certification may advertise, in the manner specified by department rule, that the individual is specially trained to serve small employers.

Sec.i4054.307.iiLIST MAINTAINED BY DEPARTMENT; WEBSITE. The department shall maintain a list of all individuals who hold a specialty certification under this chapter, together with the business address and phone number of each individual and a general description of the individual's service area. The department shall publish the list on the department website.

Sec.i4054.308.iiRULES. The commissioner, in accordance with Section 36.001, may adopt rules as necessary to administer this subchapter.

SECTIONi3.02.iiSection 4001.002, Insurance Code, is amended by adding Subsection (a-1) to read as follows:

(a-1)iiExcept as otherwise provided by this code, this title applies to each individual who holds a specialty certification under Subchapter G, Chapter 4054.

SECTIONi3.03.iiNot later than January 1, 2008, the Texas Department of Insurance may begin issuing specialty certifications under Subchapter G, Chapter 4054, Insurance Code, as added by this article.

ARTICLEi4.iiEFFECTIVE DATE

SECTIONi4.01.iiThis Act takes effect September 1, 2007.

The Conference Committee Report on SBi23 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1908

Senator Ellis submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

4976 80th Legislature — Regular Session 68th Day


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi1908 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

ELLIS MENENDEZ
WENTWORTH CHISUM
BRIMER SWINFORD
WEST THOMPSON
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to affordable housing and to the receivership and rehabilitation of certain property; providing an administrative penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubsections (d) and (i), Section 403.302, Government Code, are amended to read as follows:

(d)iiFor the purposes of this section, "taxable value" means the market value of all taxable property less:

(1)iithe total dollar amount of any residence homestead exemptions lawfully granted under Section 11.13(b) or (c), Tax Code, in the year that is the subject of the study for each school district;

(2)iione-half of the total dollar amount of any residence homestead exemptions granted under Section 11.13(n), Tax Code, in the year that is the subject of the study for each school district;

(3)iithe total dollar amount of any exemptions granted before May 31, 1993, within a reinvestment zone under agreements authorized by Chapter 312, Tax Code;

(4)iisubject to Subsection (e), the total dollar amount of any captured appraised value of property that:

(A)iiis within a reinvestment zone created on or before May 31, 1999, or is proposed to be included within the boundaries of a reinvestment zone as the boundaries of the zone and the proposed portion of tax increment paid into the tax increment fund by a school district are described in a written notification provided by the municipality or the board of directors of the zone to the governing bodies of the other taxing units in the manner provided by Section 311.003(e), Tax Code, before May 31, 1999, and within the boundaries of the zone as those boundaries existed on September 1, 1999, including subsequent improvements to the property regardless of when made;

(B)iigenerates taxes paid into a tax increment fund created under Chapter 311, Tax Code, under a reinvestment zone financing plan approved under Section 311.011(d), Tax Code, on or before September 1, 1999; and

(C)iiis eligible for tax increment financing under Chapter 311, Tax Code;

Saturday, May 26, 2007 SENATE JOURNAL 4977


(5)iifor a school district for which a deduction from taxable value is made under Subdivision (4), an amount equal to the taxable value required to generate revenue when taxed at the school district's current tax rate in an amount that, when added to the taxes of the district paid into a tax increment fund as described by Subdivision (4)(B), is equal to the total amount of taxes the district would have paid into the tax increment fund if the district levied taxes at the rate the district levied in 2005;

(6)iithe total dollar amount of any captured appraised value of property that:

(A)iiis within a reinvestment zone:

(i)iicreated on or before December 31, 2008, by a municipality with a population of less than 18,000; and

(ii)iithe project plan for which includes the alteration, remodeling, repair, or reconstruction of a structure that is included on the National Register of Historic Places and requires that a portion of the tax increment of the zone be used for the improvement or construction of related facilities or for affordable housing;

(B)iigenerates school district taxes that are paid into a tax increment fund created under Chapter 311, Tax Code; and

(C)iiis eligible for tax increment financing under Chapter 311, Tax Code;

(7)iithe total dollar amount of any exemptions granted under Section 11.251, Tax Code;

(8)i[(7)]iithe difference between the comptroller's estimate of the market value and the productivity value of land that qualifies for appraisal on the basis of its productive capacity, except that the productivity value estimated by the comptroller may not exceed the fair market value of the land;

(9)i[(8)]iithe portion of the appraised value of residence homesteads of individuals who receive a tax limitation under Section 11.26, Tax Code, on which school district taxes are not imposed in the year that is the subject of the study, calculated as if the residence homesteads were appraised at the full value required by law;

(10)i[(9)]iia portion of the market value of property not otherwise fully taxable by the district at market value because of:

(A)iiaction required by statute or the constitution of this state that, if the tax rate adopted by the district is applied to it, produces an amount equal to the difference between the tax that the district would have imposed on the property if the property were fully taxable at market value and the tax that the district is actually authorized to impose on the property, if this subsection does not otherwise require that portion to be deducted; or

(B)iiaction taken by the district under Subchapter B or C, Chapter 313, Tax Code;

(11)i[(10)]iithe market value of all tangible personal property, other than manufactured homes, owned by a family or individual and not held or used for the production of income;

(12)i[(11)]iithe appraised value of property the collection of delinquent taxes on which is deferred under Section 33.06, Tax Code;

4978 80th Legislature — Regular Session 68th Day


(13)i[(12)]iithe portion of the appraised value of property the collection of delinquent taxes on which is deferred under Section 33.065, Tax Code; and

(14)i[(13)]iithe amount by which the market value of a residence homestead to which Section 23.23, Tax Code, applies exceeds the appraised value of that property as calculated under that section.

(i)iiIf the comptroller determines in the annual study that the market value of property in a school district as determined by the appraisal district that appraises property for the school district, less the total of the amounts and values listed in Subsection (d) as determined by that appraisal district, is valid, the comptroller, in determining the taxable value of property in the school district under Subsection (d), shall for purposes of Subsection (d)(14) [(d)(13)] subtract from the market value as determined by the appraisal district of residence homesteads to which Section 23.23, Tax Code, applies the amount by which that amount exceeds the appraised value of those properties as calculated by the appraisal district under Section 23.23, Tax Code. If the comptroller determines in the annual study that the market value of property in a school district as determined by the appraisal district that appraises property for the school district, less the total of the amounts and values listed in Subsection (d) as determined by that appraisal district, is not valid, the comptroller, in determining the taxable value of property in the school district under Subsection (d), shall for purposes of Subsection (d)(14) [(d)(13)] subtract from the market value as estimated by the comptroller of residence homesteads to which Section 23.23, Tax Code, applies the amount by which that amount exceeds the appraised value of those properties as calculated by the appraisal district under Section 23.23, Tax Code.

SECTIONi2.iiChapter 2306, Government Code, is amended by adding Subchapter MM to read as follows:

SUBCHAPTER MM. TEXAS FIRST-TIME HOMEBUYER PROGRAM

Sec.i2306.1071.iiDEFINITIONS. In this subchapter:

(1)ii"First-time homebuyer" means a person who has not owned a home during the three years preceding the date on which an application under this subchapter is filed.

(2)ii"Home" means a dwelling in this state in which a first-time homebuyer intends to reside as the homebuyer's principal residence.

(3)ii"Mortgage lender" has the meaning assigned by Section 2306.004.

(4)ii"Program" means the Texas First-Time Homebuyer Program.

Sec.i2306.1072.iiTEXAS FIRST-TIME HOMEBUYER PROGRAM. (a)iiThe Texas First-Time Homebuyer Program shall facilitate the origination of single-family mortgage loans for eligible first-time homebuyers.

(b)iiThe program may include down payment and closing cost assistance.

Sec.i2306.1073.iiADMINISTRATION OF PROGRAM; RULES. (a)iiThe department shall administer the program.

(b)iiThe board shall adopt rules governing:

(1)iithe administration of the program;

(2)iithe making of loans under the program;

(3)iithe criteria for approving participating mortgage lenders;

Saturday, May 26, 2007 SENATE JOURNAL 4979


(4)iithe use of insurance on the loans and the homes financed under the program, as considered appropriate by the board to provide additional security for the loans;

(5)iithe verification of occupancy of the home by the homebuyer as the homebuyer's principal residence; and

(6)iithe terms of any contract made with any mortgage lender for processing, originating, servicing, or administering the loans.

Sec.i2306.1074.iiELIGIBILITY. (a)iiTo be eligible for a mortgage loan under this subchapter, a homebuyer must:

(1)iiqualify as a first-time homebuyer under this subchapter;

(2)iihave an income of not more than 115 percent of area median family income or 140 percent of area median family income in targeted areas; and

(3)iimeet any additional requirements or limitations prescribed by the department.

(b)iiTo be eligible for a loan under this subchapter to assist a homebuyer with down payment and closing costs, a homebuyer must:

(1)iiqualify as a first-time homebuyer under this subchapter;

(2)iihave an income of not more than 80 percent of area median family income; and

(3)iimeet any additional requirements or limitations prescribed by the department.

(c)iiThe department may contract with other agencies of the state or with private entities to determine whether applicants qualify as first-time homebuyers under this section or otherwise to administer all or part of this section.

Sec.i2306.1075.iiFEES. The board of directors of the department may set and collect from each applicant any fees the board considers reasonable and necessary to cover the expenses of administering the program.

Sec.i2306.1076.iiFUNDING. (a)iiThe department shall ensure that a loan under this section is structured in a way that complies with any requirements associated with the source of the funds used for the loan.

(b)iiIn addition to funds set aside for the program under Section 1372.023, the department may solicit and accept gifts and grants for the purposes of this section.

SECTIONi3.iiSubsection (c), Section 2306.111, Government Code, as amended by Chapters 1367 and 1448, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows:

(c)iiIn administering federal housing funds provided to the state under the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. Section 12701 et seq.), the department shall expend:

(1)ii[at least] 95 percent of these funds for the benefit of non-participating small cities and rural areas that do not qualify to receive funds under the Cranston-Gonzalez National Affordable Housing Act directly from the United States Department of Housing and Urban Development; and

(2)iifive percent of these[. All] funds [not set aside under this subsection shall be used] for the benefit of persons with disabilities who live in any area of this state [areas other than non-participating areas].

4980 80th Legislature — Regular Session 68th Day


SECTIONi4.iiSection 2306.111, Government Code, is amended by amending Subsections (d), (d-1), (e), (f), and (g) and adding Subsections (d-2) and (d-3) to read as follows:

(d)iiThe department shall allocate housing funds provided to the state under the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. Section 12701 et seq.), housing trust funds administered by the department under Sections 2306.201-2306.206, and commitments issued under the federal low income housing tax credit program administered by the department under Subchapter DD to all urban [urban/exurban] areas and rural areas of each uniform state service region based on a formula developed by the department under Section 2306.1115 [that is based on tho need for housing assistance and the availability of housing resources in those urban/exurban areas and rural areas, provided that the allocations are consistent with applicable federal and state requirements and limitations. The department shall use the information contained in its annual state low income housing plan and shall use other appropriate data to develop the formula]. If the department determines under the formula that an insufficient number of eligible applications for assistance out of funds or credits allocable under this subsection are submitted to the department from a particular uniform state service region, the department shall use the unused funds or credits allocated to that region for all urban [urban/exurban] areas and rural areas in other uniform state service regions based on identified need and financial feasibility.

(d-1)iiIn allocating low income housing tax credit commitments under Subchapter DD, the department shall, before applying the regional allocation formula prescribed by Section 2306.1115, set aside for at-risk developments, as defined by Section 2306.6702, not less than the minimum amount of housing tax credits required under Section 2306.6714. Funds or credits are not required to be allocated according to the regional allocation formula under Subsection (d) if:

(1)iithe funds or credits are reserved for contract-for-deed conversions or for set-asides mandated by state or federal law[;] and

[(2)]iieach contract-for-deed allocation or set-aside allocation equals not more than 10 percent of the total allocation of funds or credits for the applicable program;

(2)iithe funds or credits are allocated by the department primarily to serve persons with disabilities; or

(3)iithe funds are housing trust funds administered by the department under Sections 2306.201-2306.206 that are not otherwise required to be set aside under state or federal law and do not exceed $3 million during each application cycle.

(d-2)iiIn allocating low income housing tax credit commitments under Subchapter DD, the department shall allocate five percent of the housing tax credits in each application cycle to developments that receive federal financial assistance through the Texas Rural Development Office of the United States Department of Agriculture. Any funds allocated to developments under this subsection that involve rehabilitation must come from the funds set aside for at-risk developments under Section 2306.6714 and any additional funds set aside for those developments under Subsection (d-1). This subsection does not apply to a development financed wholly or partly under Section 538 of the Housing Act of 1949 (42 U.S.C. Section 1490p-2).

Saturday, May 26, 2007 SENATE JOURNAL 4981


(d-3)iiIn allocating low income tax credit commitments under Subchapter DD, the department shall allocate to developments in rural areas 20 percent or more of the housing tax credits in the state in the application cycle, with $500,000 or more in housing tax credits being reserved for each uniform state service region under this subsection. Any amount of housing tax credits set aside for developments in a rural area in a specific uniform state service region under this subsection that remains after the initial allocation of housing tax credits is available for allocation to developments in any other rural area first, and then is available to developments in urban areas of any uniform state service region.

(e)iiThe department shall include in its annual low income housing plan under Section 2306.0721:

(1)iithe formula developed by the department under Section 2306.1115 [Subsection (d)]; and

(2)iithe allocation targets established under the formula for the urban [urban/exurban] areas and rural areas of each uniform state service region.

(f)iiThe department shall include in its annual low income housing report under Section 2306.072 the amounts of funds and credits allocated to the urban [urban/exurban] areas and rural areas of each uniform state service region in the preceding year for each federal and state program affected by the requirements of Subsection (d).

(g)iiFor all urban [urban/exurban] areas and rural areas of each uniform state service region, the department shall establish funding priorities to ensure that:

(1)iifunds are awarded to project applicants who are best able to meet recognized needs for affordable housing, as determined by department rule;

(2)iiwhen practicable and when authorized under Section 42, Internal Revenue Code of 1986 (26 U.S.C. Section 42), the least restrictive funding sources are used to serve the lowest income residents; and

(3)iifunds are awarded based on a project applicant's ability, when consistent with Section 42, Internal Revenue Code of 1986 (26 U.S.C. Section 42), practicable, and economically feasible, to:

(A)iiprovide the greatest number of quality residential units;

(B)iiserve persons with the lowest percent area median family income;

(C)iiextend the duration of the project to serve a continuing public need;

(D)iiuse other local funding sources to minimize the amount of state subsidy needed to complete the project; and

(E)iiprovide integrated, affordable housing for individuals and families with different levels of income.

SECTIONi5.iiSubchapter F, Chapter 2306, Government Code, is amended by adding Section 2306.1115 to read as follows:

Sec.i2306.1115.iiREGIONAL ALLOCATION FORMULA. (a)iiTo allocate housing funds under Section 2306.111(d), the department shall develop a formula that:

(1)iiincludes as a factor the need for housing assistance and the availability of housing resources in an urban area or rural area;

(2)iiprovides for allocations that are consistent with applicable federal and state requirements and limitations; and

4982 80th Legislature — Regular Session 68th Day


(3)iiincludes other factors determined by the department to be relevant to the equitable distribution of housing funds under Section 2306.111(d).

(b)iiThe department shall use information contained in its annual state low income housing plan and other appropriate data to develop the formula under this section.

SECTIONi6.iiSubsection (b), Section 2306.6710, Government Code, is amended to read as follows:

(b)iiIf an application satisfies the threshold criteria, the department shall score and rank the application using a point system that:

(1)iiprioritizes in descending order criteria regarding:

(A)iifinancial feasibility of the development based on the supporting financial data required in the application that will include a project underwriting pro forma from the permanent or construction lender;

(B)iiquantifiable community participation with respect to the development, evaluated on the basis of written statements from any neighborhood organizations on record with the state or county in which the development is to be located and whose boundaries contain the proposed development site;

(C)iithe income levels of tenants of the development;

(D)iithe size and quality of the units;

(E)iithe commitment of development funding by local political subdivisions;

(F)iithe level of community support for the application, evaluated on the basis of written statements from the state representative or the state senator that represents the district containing the proposed development site [elected officials];

(G)iithe rent levels of the units;

(H)iithe cost of the development by square foot;

[and]

(I)iithe services to be provided to tenants of the development; and

(J)iiwhether, at the time the complete application is submitted or at any time within the two-year period preceding the date of submission, the proposed development site is located in an area declared to be a disaster under Section 418.014;

(2)iiuses criteria imposing penalties on applicants or affiliates who have requested extensions of department deadlines relating to developments supported by housing tax credit allocations made in the application round preceding the current round or a developer or principal of the applicant that has been removed by the lender, equity provider, or limited partners for its failure to perform its obligations under the loan documents or limited partnership agreement; and

(3)iiencourages applicants to provide free notary public service to the residents of the developments for which the allocation of housing tax credits is requested.

SECTIONi7.iiSection 2306.004, Government Code, is amended by amending Subdivisions (4), (7), and (14) and adding Subdivisions (4-a), (12-a), (23-a), (23-b), (26-a), (28-a), (28-b), (35), and (36) to read as follows:

(4)ii"Department" means the Texas Department of Housing and Community Affairs or any successor agency.

(4-a)ii"Development funding" means:

Saturday, May 26, 2007 SENATE JOURNAL 4983


(A)iia loan or grant; or

(B)iian in-kind contribution, including a donation of real property, a fee waiver for a building permit or for water or sewer service, or a similar contribution that:

(i)iiprovides an economic benefit; and

(ii)iiresults in a quantifiable cost reduction for the applicable development.

(7)ii"Elderly individual" means an individual 62 [60] years of age or older or of an age specified by the applicable federal program.

(12-a)ii"Grant" means financial assistance that is awarded in the form of money to a housing sponsor for a specific purpose and that is not required to be repaid. For purposes of this chapter, a grant includes a forgivable loan.

(14)ii"Housing sponsor" means[:

[(A)] an individual, [including an individual or family of low and very low income or family of moderate income,] joint venture, partnership, limited partnership, trust, firm, corporation, limited liability company, other form of business organization, or cooperative that is approved by the department as qualified to own, construct, acquire, rehabilitate, operate, manage, or maintain a housing development, subject to the regulatory powers of the department and other terms and conditions in this chapter[; or

[(B)iiin an economically depressed or blighted area, or in a federally assisted new community located within a home-rule municipality, the term may include an individual or family whose income exceeds the moderate income level if at least 90 percent of the total mortgage amount available under a mortgage revenue bond issue is designated for individuals and families of low income or families of moderate income].

(23-a)ii"Neighborhood organization" means an organization that is composed of persons living near one another within the organization's defined boundaries for the neighborhood and that has a primary purpose of working to maintain or improve the general welfare of the neighborhood. A neighborhood organization includes a homeowners' association or a property owners' association.

(23-b)ii"New construction" means any construction to a development or a portion of a development that does not meet the definition of rehabilitation under this section.

(26-a)ii"Rehabilitation" means the improvement or modification of an existing residential development through an alteration, addition, or enhancement. The term includes the demolition of an existing residential development and the reconstruction of any development units, but does not include the improvement or modification of an existing residential development for the purpose of an adaptive reuse of the development.

(28-a)ii"Rural area" means an area that is located:

(A)iioutside the boundaries of a primary metropolitan statistical area or a metropolitan statistical area;

(B)iiwithin the boundaries of a primary metropolitan statistical area or a metropolitan statistical area, if the statistical area has a population of 25,000 or less and does not share a boundary with an urban area; or

4984 80th Legislature — Regular Session 68th Day


(C)iiin an area that is eligible for funding by the Texas Rural Development Office of the United States Department of Agriculture, other than an area that is located in a municipality with a population of more than 50,000.

(28-b)ii"Rural development" means a development or proposed development that is located in a rural area, other than rural new construction developments with more than 80 units.

(35)ii"Uniform application and funding cycle" means an application and funding cycle established under Section 2306.1111.

(36)ii"Urban area" means the area that is located within the boundaries of a primary metropolitan statistical area or a metropolitan statistical area other than an area described by Subdivision (28-a)(B) or eligible for funding as described by Subdivision (28-a)(C).

SECTIONi8.iiSubsections (b) through (e), Section 2306.032, Government Code, are amended to read as follows:

(b)iiThe board shall keep [complete] minutes and complete transcripts of board meetings. The department shall post the transcripts on its website and shall otherwise maintain all accounts, minutes, and other records related to the meetings [shall be maintained by the department].

(c)iiAll materials provided to the board [in the possession of the department] that are relevant to a matter proposed for discussion at a board meeting must be posted on the department's website not later than the third day before the date of the meeting[, made available in hard-copy format at the department, filed with the secretary of state for publication by reference in the Texas Register, and disseminated by any other means required by this chapter or by Chapter 551].

(d)iiAny materials made available to the board by the department at a board meeting [The materials described by Subsection (c)] must be made available in hard copy format to the members of the public in attendance at [as required by Subsection (c) not later than the seventh day before the date of] the meeting. [The board may not consider at the meeting any material that is not made available to the public by the date required by this subsection.]

(e)iiThe board shall conduct its meetings in accordance with Chapter 551, except as otherwise required by this chapter [The agenda for a board meeting must state each project the staff is recommending for assistance by the department].

SECTIONi9.iiSection 2306.039, Government Code, is amended to read as follows:

Sec.i2306.039.iiOPEN MEETINGS AND OPEN RECORDS. (a)iiExcept as provided by Subsections [Subsection] (b) and (c), the department and the Texas State Affordable Housing Corporation are subject to Chapters 551 and 552.

(b)iiChapters 551 and 552 do [This section does] not apply to the personal or business financial information, including social security numbers, taxpayer identification numbers, or bank account numbers, submitted by a housing sponsor or an individual or family to receive [for] a loan, grant, or other housing assistance under a program administered by the department or the Texas State Affordable Housing Corporation or from bonds issued by the department, except that the department and the corporation are permitted to disclose information about any applicant in a form

Saturday, May 26, 2007 SENATE JOURNAL 4985


that does not reveal the identity of the sponsor, individual, or family for purposes of determining eligibility for programs and in preparing reports required under this chapter.

(c)iiThe department's internal auditor, fraud prevention coordinator, or ethics advisor may meet in an executive session of the board to discuss issues related to fraud, waste, or abuse.

SECTIONi10.iiSubchapter B, Chapter 2306, Government Code, is amended by adding Sections 2306.040 through 2306.0503 to read as follows:

Sec.i2306.040.iiDEPARTMENT PARTICIPATION IN LEGISLATIVE HEARING. On request, the department shall participate in any public hearing conducted by a legislator to discuss a rule to be adopted by the department.

Sec.i2306.041.iiIMPOSITION OF PENALTY. The board may impose an administrative penalty on a person who violates this chapter or a rule or order adopted under this chapter.

Sec.i2306.042.iiAMOUNT OF PENALTY. (a)iiThe amount of an administrative penalty may not exceed $1,000 for each violation. Each day a violation continues or occurs is a separate violation for purposes of imposing a penalty.

(b)iiThe amount of the penalty shall be based on:

(1)iithe seriousness of the violation, including:

(A)iithe nature, circumstance, extent, and gravity of any prohibited act; and

(B)iithe hazard or potential hazard created to the health, safety, or economic welfare of the public;

(2)iithe history of previous violations;

(3)iithe amount necessary to deter a future violation;

(4)iiefforts made to correct the violation; and

(5)iiany other matter that justice may require.

(c)iiThe board by rule or through procedures adopted by the board and published in the Texas Register shall develop a standardized penalty schedule based on the criteria listed in Subsection (b).

Sec.i2306.043.iiREPORT AND NOTICE OF VIOLATION AND PENALTY. (a)iiIf the director determines that a violation occurred, the director shall issue to the board a report stating:

(1)iithe facts on which the determination is based; and

(2)iithe director's recommendation on the imposition of the penalty, including a recommendation on the amount of the penalty.

(b)iiNot later than the 14th day after the date the report is issued, the director shall give written notice of the report to the person.

(c)iiThe notice must:

(1)iiinclude a brief summary of the alleged violation;

(2)iistate the amount of the recommended penalty; and

(3)iiinform the person of the person's right to a hearing before the board on the occurrence of the violation, the amount of the penalty, or both.

Sec.i2306.044.iiPENALTY TO BE PAID OR HEARING REQUESTED. (a)iiNot later than the 20th day after the date the person receives the notice, the person in writing may:

4986 80th Legislature — Regular Session 68th Day


(1)iiaccept the determination and recommended penalty of the director; or

(2)iimake a request for a hearing before the board on the occurrence of the violation, the amount of the penalty, or both.

(b)iiIf the person accepts the determination and recommended penalty of the director, the board by order shall approve the determination and impose the recommended penalty.

Sec.i2306.045.iiHEARING. (a)iiIf the person requests a hearing before the board or fails to respond in a timely manner to the notice, the director shall set a hearing and give written notice of the hearing to the person.

(b)iiThe board shall hold the hearing and make findings of fact and conclusions of law about the occurrence of the violation and the amount of a proposed penalty.

Sec.i2306.046.iiDECISION BY BOARD. (a)iiBased on the findings of fact and conclusions of law, the board by order may:

(1)iifind that a violation occurred and impose a penalty; or

(2)iifind that a violation did not occur.

(b)iiThe notice of the board's order given to the person must include a statement of the right of the person to judicial review of the order.

Sec.i2306.047.iiOPTIONS FOLLOWING DECISION: PAY OR APPEAL. Not later than the 30th day after the date the board's order becomes final, the person shall:

(1)iipay the penalty; or

(2)iifile a petition for judicial review contesting the occurrence of the violation, the amount of the penalty, or both.

Sec.i2306.048.iiSTAY OF ENFORCEMENT OF PENALTY. (a)iiWithin the 30-day period prescribed by Section 2306.047, a person who files a petition for judicial review may:

(1)iistay enforcement of the penalty by:

(A)iipaying the penalty to the court for placement in an escrow account; or

(B)iigiving the court a supersedeas bond approved by the court that:

(i)iiis for the amount of the penalty; and

(ii)iiis effective until all judicial review of the board's order is final; or

(2)iirequest the court to stay enforcement of the penalty by:

(A)iifiling with the court a sworn affidavit of the person stating that the person is financially unable to pay the penalty and is financially unable to give the supersedeas bond; and

(B)iisending a copy of the affidavit to the director by certified mail.

(b)iiIf the director receives a copy of an affidavit under Subsection (a)(2), the director may file with the court, not later than the fifth day after the date the copy is received, a contest to the affidavit.

(c)iiThe court shall hold a hearing on the facts alleged in the affidavit as soon as practicable and shall stay the enforcement of the penalty on finding that the alleged facts are true. The person who files an affidavit has the burden of proving that the person is financially unable to pay the penalty and to give a supersedeas bond.

Sec.i2306.049.iiDECISION BY COURT. (a)iiJudicial review of a board order imposing an administrative penalty is by trial de novo.

Saturday, May 26, 2007 SENATE JOURNAL 4987


(b)iiIf the court sustains the finding that a violation occurred, the court may uphold or reduce the amount of the penalty and order the person to pay the full or reduced amount of the penalty.

(c)iiIf the court does not sustain the finding that a violation occurred, the court shall order that a penalty is not owed and may award the person reasonable attorney's fees.

Sec.i2306.050.iiREMITTANCE OF PENALTY AND INTEREST. (a)iiIf the person paid the penalty and if the amount of the penalty is reduced or the penalty is not upheld by the court, the court shall order, when the court's judgment becomes final, that the appropriate amount plus accrued interest be remitted to the person.

(b)iiThe interest accrues at the rate charged on loans to depository institutions by the New York Federal Reserve Bank.

(c)iiThe interest shall be paid for the period beginning on the date the penalty is paid and ending on the date the penalty is remitted.

Sec.i2306.0501.iiRELEASE OF BOND. (a)iiIf the person gave a supersedeas bond and the penalty is not upheld by the court, the court shall order, when the court's judgment becomes final, the release of the bond.

(b)iiIf the person gave a supersedeas bond and the amount of the penalty is reduced, the court shall order the release of the bond after the person pays the reduced amount.

Sec.i2306.0502.iiCOLLECTION OF PENALTY. (a)iiIf the person does not pay the penalty and the enforcement of the penalty is not stayed, the penalty may be collected.

(b)iiThe attorney general may sue to collect the penalty.

Sec.i2306.0503.iiADMINISTRATIVE PROCEDURE. A proceeding to impose the penalty is considered to be a contested case under Chapter 2001.

SECTIONi11.iiSection 2306.054, Government Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows:

(a)iiThe governor or director may appoint special advisory councils to:

(1)iiassist the department in reviewing [adopting] basic policy; or

(2)iioffer advice on technical aspects of certain programs.

(c)iiA special advisory council is subject to Chapter 2110, including Section 2110.008(a) but not including Section 2110.008(b).

SECTIONi12.iiSubsection (a), Section 2306.057, Government Code, is amended to read as follows:

(a)iiBefore the board approves any project application submitted under this chapter, the department, through the division with responsibility for compliance matters, shall:

(1)iiassess:

(A)iithe compliance history in this state of the applicant and any affiliate of the applicant with respect to all applicable requirements; and

(B)iithe compliance issues associated with the proposed project; and

(2)iiprovide to the board a written report regarding the results of the assessments described by Subdivision (1).

SECTIONi13.iiSubsection (a), Section 2306.069, Government Code, is amended to read as follows:

4988 80th Legislature — Regular Session 68th Day


(a)iiWith the approval of the attorney general, the department may hire appropriate [The department shall obtain and evaluate information regarding the affirmative action policies and practices of proposed outside legal counsel. The department must include the evaluation in a request to the attorney general for] outside legal counsel.

SECTIONi14.iiSection 2306.070, Government Code, is amended to read as follows:

Sec.i2306.070.iiBUDGET. (a)iiIn preparing the department's legislative appropriations request, the department shall also prepare:

(1)iia report detailing the fees received, on a cash basis, for each activity administered by the department during each of the three preceding years;

(2)iian operating budget for the housing finance division; and

(3)iian explanation of any projected increase or decrease of three percent or more in fees estimated for the operating budget as compared to the fees received in the most recent budget year.

(b)iiThe department shall submit the report, operating budget, and explanation to the Legislative Budget Board, the Senate Finance Committee, and the House Appropriations Committee.

SECTIONi15.iiSubsections (a) and (b), Section 2306.072, Government Code, are amended to read as follows:

(a)iiNot later than March [December] 18 of each year, the director shall prepare and submit to the board an annual report of the department's housing activities for the preceding year.

(b)iiNot later than the 30th day after the date the board receives and approves the report, the board shall submit the report to the governor, lieutenant governor, speaker of the house of representatives, and members of any legislative oversight committee.

SECTIONi16.iiSubsections (a) and (b), Section 2306.0721, Government Code, are amended to read as follows:

(a)iiNot later than March [December] 18 of each year, the director shall prepare and submit to the board an integrated state low income housing plan for the next year.

(b)iiNot later than the 30th day after the date the board receives and approves the plan, the board shall submit the plan to the governor, lieutenant governor, and the speaker of the house of representatives.

SECTIONi17.iiSection 2306.0723, Government Code, is amended to read as follows:

Sec.i2306.0723.iiREPORT CONSIDERED AS RULE [PUBLIC PARTICIPATION REQUIREMENTS]. [(a)]iiThe department shall consider the annual low income housing report to be a rule and in developing the report shall follow rulemaking procedures required by Chapter 2001 [hold public hearings on the annual state low income housing plan and report before the director submits the report and the plan to the board. The department shall provide notice of the public hearings as required by Section 2306.0661. The published notice must include a summary of the report and plan. The department shall accept comments on the report and plan at the public hearings and for at least 30 days after the date of the publication of the notice of the hearings].

Saturday, May 26, 2007 SENATE JOURNAL 4989


[(b)iiIn addition to any other necessary topics relating to the report and the plan, each public hearing required by Subsection (a) must address:

[(1)iiinfrastructure needs;

[(2)iihome ownership programs;

[(3)iirental housing programs;

[(4)iihousing repair programs; and

[(5)iithe concerns of individuals with special needs, as defined by Section 2306.511.

[(c)iiThe board shall hold a public hearing on the state low income housing report and plan before the board submits the report and the plan to the governor, lieutenant governor, speaker of the house of representatives, and members of the legislature.

[(d)iiThe board shall include with the report and the plan the board submits to the governor, lieutenant governor, speaker of the house of representatives, members of the legislature, and members of the advisory board formed by the department to advise on the consolidated plan a written summary of public comments on the report and the plan.]

SECTIONi18.iiSection 2306.082, Government Code, is amended by amending Subsections (b) and (c) and adding Subsections (d), (e), and (f) to read as follows:

(b)iiThe department's procedures relating to alternative dispute resolution must designate [conform, to the extent possible, to any model guidelines issued by] the State Office of Administrative Hearings as the primary mediator and, to the extent practicable, conform to any guidelines or rules issued by that office [for the use of alternative dispute resolution by state agencies].

(c)iiThe department shall designate a [trained] person employed by or appointed to the office of the director but who is not in the legal division to coordinate and process requests for the alternative dispute resolution procedures. The person must receive training from an independent source in alternative dispute resolution not later than the 180th day after the date the person was designated to coordinate and process requests for the alternative dispute resolution procedures[:

[(1)iicoordinate the implementation of the policy adopted under Subsection (a);

[(2)iiserve as a resource for any training needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and

[(3)iicollect data concerning the effectiveness of those procedures, as implemented by the department].

(d)iiThe department shall notify a person requesting the alternative dispute resolution procedures that:

(1)iian alternative dispute resolution decision is not binding on the state; and

(2)iithe department will mediate in good faith.

(e)iiThe alternative dispute resolution procedures may be requested before the board makes a final decision.

(f)iiNotwithstanding any other provision of this section, the alternative dispute resolution procedures may not be used to unnecessarily delay a proceeding under this chapter.

4990 80th Legislature — Regular Session 68th Day


SECTIONi19.iiSection 2306.092, Government Code, is amended to read as follows:

Sec.i2306.092.iiDUTIES REGARDING CERTAIN PROGRAMS CREATED UNDER FEDERAL LAW. The department shall administer, as appropriate under policies established by the board:

(1)iistate responsibilities for programs created under the federal Economic Opportunity Act of 1964 (42 U.S.C. Section 2701 et seq.);

(2)iiprograms assigned to the department under the Omnibus Budget Reconciliation Act of 1981 (Pub.L. No. 97-35); and

(3)iiother federal acts creating economic opportunity programs assigned to the department.

SECTIONi20.iiSection 2306.1111, Government Code, is amended to read as follows:

Sec.i2306.1111.iiUNIFORM APPLICATION AND FUNDING CYCLES [CYCLE]. (a)iiNotwithstanding any other state law and to the extent consistent with federal law, the department shall establish [a] uniform application and funding cycles [cycle] for all competitive single-family and multifamily housing programs administered by the department under this chapter, other than programs involving the issuance of private activity bonds.

(b)iiWherever possible, the department shall use uniform threshold requirements for single-family and multifamily housing program applications, including uniform threshold requirements relating to market studies and environmental reports.

SECTIONi21.iiSubsections (b), (c), and (d), Section 2306.1112, Government Code, are amended to read as follows:

(b)iiThe advisory committee must include representatives from [is composed of the director, the administrator of each of the department's programs, and one representative from each of] the department's [planning,] underwriting[,] and compliance functions and from the divisions responsible for administering federal housing funds provided to the state under the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. Section 12701 et seq.) and for administering low income housing tax credits.

(c)ii[The advisory committee shall develop the funding priorities required by Section 2306.111(g) and shall make funding and allocation recommendations to the board based on the ability of applicants to meet those priorities.

[(d)]iiThe advisory committee is not subject to Chapter 2110.

SECTIONi22.iiSection 2306.1113, Government Code, is amended by amending Subsections (a), (a-1), and (b) and adding Subsection (c) to read as follows:

(a)iiDuring the period beginning on the date [a] project applications are [application is] filed in an application cycle and ending on the date the board makes a final decision with respect to the [any] approval of any [that] application in that cycle, a member of the board may not communicate with the following persons:

(1)iian [the] applicant or a related party, as defined by state law, including board rules, and federal law; and

(2)iiany person who is:

(A)iiactive in the construction, rehabilitation, ownership, or control of a [the] proposed project, including:

Saturday, May 26, 2007 SENATE JOURNAL 4991


(i)iia general partner or contractor; and

(ii)iia principal or affiliate of a general partner or contractor; or

(B)iiemployed as a consultant, lobbyist, or attorney by an [the] applicant or a related party.

(a-1)iiSubject to Subsection (a-2), during the period beginning on the date [a] project applications are [application is] filed in an application cycle and ending on the date the board makes a final decision with respect to the [any] approval of any [that] application in that cycle, an employee of the department may communicate about an [the] application with the following persons:

(1)iithe applicant or a related party, as defined by state law, including board rules, and federal law; and

(2)iiany person who is:

(A)iiactive in the construction, rehabilitation, ownership, or control of the proposed project, including:

(i)iia general partner or contractor; and

(ii)iia principal or affiliate of a general partner or contractor; or

(B)iiemployed as a consultant, lobbyist, or attorney by the applicant or a related party.

(b)iiNotwithstanding Subsection (a) or (a-1), a board member or department employee may communicate without restriction with a person listed in Subsection (a) or (a-1) during [at] any board meeting or public hearing held with respect to the application, but not during a recess or other nonrecord portion of the meeting or hearing.

(c)iiSubsection (a) does not prohibit the board from participating in social events at which a person with whom communications are prohibited may or will be present, provided that all matters related to applications to be considered by the board will not be discussed.

SECTIONi23.iiSubsection (b), Section 2306.185, Government Code, is amended to read as follows:

(b)iiIn implementing Subsection (a)(1) and in developing underwriting standards and application scoring criteria for the award of loans, grants, or tax credits to multifamily developments, the department shall ensure that the economic benefits of longer affordability terms, for specific terms of years as established by the board, and below market rate rents are accurately assessed and considered.

SECTIONi24.iiSection 2306.229, Government Code, is amended by adding Subsection (c) to read as follows:

(c)iiFor each loan made for the development of multifamily housing with funds provided to the state under the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. Section 12701 et seq.), the department shall obtain a mortgagee's title policy in the amount of the loan. The department may not designate a specific title insurance company to provide the mortgagee title policy or require the borrower to provide the policy from a specific title insurance company. The borrower shall select the title insurance company to close the loan and to provide the mortgagee title policy.

SECTIONi25.iiSubsection (a), Section 2306.359, Government Code, is amended to read as follows:

4992 80th Legislature — Regular Session 68th Day


(a)iiIn evaluating an application for an issuance of private activity bonds, the department shall score and rank the application using a point system based on criteria that are adopted by the department, including criteria[:

[(1)] regarding:

(1)i[(A)]iithe income levels of tenants of the development, consistent with the funding priorities provided by Section 1372.0321;

(2)i[(B)]iithe rent levels of the units;

(3)i[(C)]iithe level of community support for the application;

(4)i[(D)]iithe period of guaranteed affordability for low income tenants;

(5)i[(E)]iithe cost per unit of the development;

(6)i[(F)]iithe size, quality, and amenities of the units;

(7)i[(G)]iithe services to be provided to tenants of the development; and

(8)i[(H)iithe commitment of development funding by local political subdivisions that enables additional units for individuals and families of very low income; and

[(I)]iiother criteria as developed by the board[; and

[(2)iiimposing penalties on applicants who have requested extensions of department deadlines relating to developments supported by an issuance of private activity bonds made in the application round preceding the current round].

SECTIONi26.iiSubsection (a), Section 2306.514, Government Code, is amended to read as follows:

(a)iiIf a person is awarded state or federal funds by the department to construct single family affordable housing for individuals and families of low and very low income, the affordable housing identified on the person's funding application must be constructed so that:

(1)iiat least one entrance door, whether located at the front, side, or back of the building:

(A)iiis on an accessible route served by a ramp or no-step entrance; and

(B)iihas at least a standard 36-inch door;

(2)iion the first floor of the building:

(A)iieach interior door is at least a standard 32-inch door, unless the door provides access only to a closet of less than 15 square feet in area;

(B)iieach hallway has a width of at least 36 inches and is level, with ramped or beveled changes at each door threshold;

(C)iieach bathroom wall is reinforced for potential installation of grab bars;

(D)iieach electrical panel [or breaker box], light switch, or thermostat is not higher than 48 inches above the floor; and

(E)iieach electrical plug or other receptacle is at least 15 inches above the floor; and

(3)iiif the applicable building code or codes do not prescribe another location for the breaker boxes, each breaker box is located not higher than 48 inches above the floor inside the building on the first floor.

SECTIONi27.iiSubchapter DD, Chapter 2306, Government Code, is amended by adding Section 2306.6735 to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 4993


Sec.i2306.6735.iiREQUIRED LEASE AGREEMENT PROVISIONS. A lease agreement with a tenant in a development supported with a housing tax credit allocation must:

(1)iiinclude any applicable federal or state standards identified by department rule that relate to the termination or nonrenewal of the lease agreement; and

(2)iibe consistent with state and federal law.

SECTIONi28.iiSubchapter DD, Chapter 2306, Government Code, is amended by adding Section 2306.67171 to read as follows:

Sec.i2306.67171.iiELECTRONIC MAIL NOTIFICATION SERVICE. (a)iiThe department shall maintain an electronic mail notification service to which any person in this state may electronically subscribe to receive information concerning the status of pre-applications and applications under this subchapter.

(b)iiThe electronic mail notification service maintained under Subsection (a) must:

(1)iiallow a subscriber to request for a zip code notification of:

(A)iithe filing of any pre-application or application concerning a development that is or will be located in the zip code;

(B)iithe posting of the board materials for board approval of a list of approved applications or the issuance of final allocation commitments for applications described by Paragraph (A); and

(C)iiany public hearing to be held concerning an application or pre-application described by Paragraph (A); and

(2)iirespond to a subscriber via electronic mail not later than the later of:

(A)iithe 14th day after the date the department receives notice of an event described by Subdivision (1); or

(B)iiif applicable, the date or dates specified by Section 2306.6717(a).

(c)iiThe department may include in an electronic mail notification sent to a subscriber any applicable information described by Section 2306.6717.

SECTIONi29.iiSection 214.003, Local Government Code, is amended by amending Subsections (a), (b), (h), (k), (l), (n), (o), and (p) and adding Subsection (h-1) to read as follows:

(a)iiA home-rule municipality may bring an action in district court against an owner of [residential] property that is not in substantial compliance with the municipal ordinances regarding:

(1)iifire protection;

(2)iistructural integrity;

(3)iizoning; or

(4)iidisposal of refuse.

(b)iiExcept as provided by Subsection (c), the court may appoint as a receiver for the property a nonprofit organization with a demonstrated record of rehabilitating [residential] properties if the court finds that:

(1)iithe structures on the property are in violation of the standards set forth in Section 214.001(b) and an ordinance described by Subsection (a);

(2)iinotice of violation was given to the record owner of the property; and

(3)iia public hearing as required by Section 214.001(d) has been conducted.

4994 80th Legislature — Regular Session 68th Day


(h)iiOn the completion of the restoration of [to] the property to [of] the minimum code standards of the municipality or guidelines for rehabilitating historic property, or before petitioning a court for termination of the receivership under Subsection (l):

(1)iithe receiver shall file with the court a full accounting of all costs and expenses incurred in the repairs, including reasonable costs for labor and supervision, [and] all income received from the property, and, at the receiver's discretion, a receivership fee of 10 percent of those costs and expenses;

(2)iiif the income exceeds the total of the cost and expense of rehabilitation and any receivership fee, the rehabilitated property shall be restored to the owners and any net income shall be returned to the owners; and

(3)iiif the total of the costs and expenses and any receivership fee exceeds [exceed] the income received during the receivership, the receiver may [shall] maintain control of the property until the time all rehabilitation and maintenance costs and any receivership fee are recovered, or until the receivership is terminated.

(h-1)iiA receiver shall have a lien on the property under receivership for all of the receiver's unreimbursed costs and expenses and any receivership fee.

(k)iiThe court may not appoint a receiver for any property that[:

[(1)]iiis an owner-occupied, single-family residence[; or

[(2)iiis zoned nonresidential and used in a nonresidential character].

(l)iiA receiver appointed by a district court under this section, or the home-rule municipality that filed the action under which the receiver was appointed, may petition the court to terminate the receivership and order the sale of the property[:

[(1)iiif the receiver has been in control of the property for more than two years and no legal owner has been identified after a diligent search; or

[(2)]iiafter the receiver has been in control of the property for more than one year [three years], if an owner has been [identified and] served with notice [notices] but has failed to assume control or repay all rehabilitation and maintenance costs and any receivership fee of the receiver.

(n)iiThe court may order the sale of the property if the court finds that:

(1)iinotice was given to each record owner of the property and each lienholder of record;

(2)iithe receiver has been in control of the property for more than one year [two years and no legal owner has been identified after a diligent search, or the receiver has been in control of the property for more than three years] and an owner has [been identified but has] failed to repay all rehabilitation and maintenance costs and any receivership fee of the receiver; and

(3)iino lienholder of record has intervened in the action and offered to repay the costs and any receivership fee of the receiver and assume control of the property.

(o)iiThe court shall order the sale to be conducted by the petitioner in the same manner that a sale is conducted under Chapter 51, Property Code. If the record owners and lienholders are identified, notice of the date and time of the sale must be sent in the same manner as provided by Chapter 51, Property Code. If the owner cannot be located after due diligence, the owner may be served notice by publication. The receiver may bid on the property at the sale and may use a lien granted under Subsection (h-1) as credit toward the purchase. The petitioner shall make a report of the sale to the court.

Saturday, May 26, 2007 SENATE JOURNAL 4995


(p)iiThe court shall confirm the sale and order a distribution of the proceeds of the sale in the following order:

(1)iicourt costs;

(2)iicosts and expenses of the receiver, and any lien held by the receiver; and

(3)iiother valid liens.

SECTIONi30.iiSubsection (a), Section 379D.010, Local Government Code, is amended to read as follows:

(a)iiThe land bank shall impose deed restrictions with appropriate terms and conditions on property sold to qualified participating developers and eligible adjacent property owners that require:

(1)iithe development and sale or rental of the property to low income households, if the property is sold to a qualified participating developer; or

(2)iithe use of the property to be consistent and compatible with the residential character of the neighborhood and any applicable standards for use adopted by the land bank, if the property is sold to an eligible adjacent property owner.

SECTIONi31.iiSection 379D.011, Local Government Code, is amended to read as follows:

Sec.i379D.011.iiRIGHT OF FIRST REFUSAL IN ELIGIBLE ADJACENT PROPERTY OWNERS; CONDITIONS OF PURCHASE. (a)iiProperty acquired by the land bank shall be offered for sale, at fair market value as determined by the appraisal district in which the property is located, to eligible adjacent property owners under a right of first refusal on terms and conditions developed by the land bank that are consistent with this chapter.

(b)iiTo be eligible to exercise a right of first refusal under this section, an owner of property adjacent to property acquired by the land bank:

(1)iimust have owned and continuously occupied that property for at least the five preceding years as that person's principal residence; and

(2)iimust meet any eligibility requirements adopted by the land bank.

(c)iiAn adjacent property owner who purchases property under this section may not lease, sell, or otherwise transfer the property to another party before the 10th anniversary of the date the adjacent property owner purchases the property. This prohibition does not apply to a transfer of property, as allowed by policies adopted by the land bank:

(1)iito a family member of the adjacent property owner; or

(2)iiin the case of the death of the adjacent property owner.

SECTIONi32.iiChapter 379D, Local Government Code, is amended by adding Section 379D.015 to read as follows:

Sec.i379D.015.iiEFFECT OF SALE TO LAND BANK OR SUBSEQUENT PURCHASERS OR LENDERS FOR VALUE; LIMITATION ON CERTAIN CAUSES OF ACTION. After the first anniversary of a sale of property to a land bank under this chapter:

(1)iia third party, other than a qualified participating developer or eligible adjacent property owner who purchased the property from the land bank under this chapter or a person with a cause of action based on a right, title, interest, or other

4996 80th Legislature — Regular Session 68th Day


claim described by Subdivision (2)(A)(ii), may not bring a cause of action to set aside or otherwise challenge the sale of the property to the land bank, including a cause of action that is brought against:

(A)iia qualified participating developer or eligible adjacent property owner who purchases property from the land bank under Section 379D.009 or 379D.011, as applicable; or

(B)iiany other subsequent purchaser for value or lender for value; and

(2)iia qualified participating developer or eligible adjacent property owner who purchases property from a land bank under this chapter or any other subsequent purchaser for value or, if applicable, a lender for a developer, owner, or purchaser described by this subdivision or any other subsequent lender for value:

(A)iihas, with the following characteristics, a full title to the property:

(i)iiexcept as provided by Subparagraph (ii), the title is not subject to any right, title, interest, or other claim a person acquired in the property before or after the sale of the property to the land bank, including a right of first refusal, right of second refusal, and any other right, title, interest, or other claim provided by this chapter, other than the right of reverter provided by Section 379D.009(d); and

(ii)iithe title is subject only to:

(a)iithe recorded restrictive covenants, liens, and valid easements of record described by Section 34.01(n), Tax Code;

(b)iiany rights of redemption applicable to the property;

(c)iiany cause of action to impeach the property deed based on a claim of fraud;

(d)iithe right of reverter provided by Section 379D.009(d) and the recorded deed restrictions described by Section 379D.010; and

(e)iiany right, title, interest, or other claim with respect to the property that arose after the sale of the property to the land bank under a law other than this chapter; and

(B)iimay conclusively presume that:

(i)iithe sale of the property to the land bank under this chapter was valid; and

(ii)iia mortgage on or a subsequent sale of the property complies with this chapter and is subject only to a right, title, interest, or other claim provided by Paragraph (A)(ii).

SECTIONi33.iiSubtitle A, Title 12, Local Government Code, is amended by adding Chapter 379E to read as follows:

CHAPTER 379E. URBAN LAND BANK PROGRAM

Sec.i379E.001.iiSHORT TITLE. This chapter may be cited as the Urban Land Bank Program Act.

Sec.i379E.002.iiAPPLICABILITY; CONSTRUCTION WITH OTHER LAW. This chapter applies only to a municipality:

(1)iito which Chapter 379C or 379D does not apply; and

(2)iithat has not ever adopted a homestead land bank program under Subchapter E, Chapter 373A.

Sec.i379E.003.iiDEFINITIONS. In this chapter:

Saturday, May 26, 2007 SENATE JOURNAL 4997


(1)ii"Affordable" means that the monthly mortgage payment or contract rent does not exceed 30 percent of the applicable median family income for that unit size, in accordance with the income and rent limit rules adopted by the Texas Department of Housing and Community Affairs.

(2)ii"Community housing development organization" or "organization" means an organization that:

(A)iimeets the definition of a community housing development organization in 24 C.F.R. Section 92.2; and

(B)iiis certified by the municipality as a community housing development organization.

(3)ii"Land bank" means an entity established or approved by the governing body of a municipality for the purpose of acquiring, holding, and transferring unimproved real property under this chapter.

(4)ii"Low income household" means a household with a gross income of not greater than 80 percent of the area median family income, adjusted for household size, for the metropolitan statistical area in which the municipality is located, as determined annually by the United States Department of Housing and Urban Development.

(5)ii"Qualified participating developer" means a developer who meets the requirements of Section 379E.005 and includes a qualified organization under Section 379E.011.

(6)ii"Urban land bank plan" or "plan" means a plan adopted by the governing body of a municipality as provided by Section 379E.006.

(7)ii"Urban land bank program" or "program" means a program adopted under Section 379E.004.

Sec.i379E.004.iiURBAN LAND BANK PROGRAM. (a)iiThe governing body of a municipality may adopt an urban land bank program in which the officer charged with selling real property ordered sold pursuant to foreclosure of a tax lien may sell certain eligible real property by private sale for purposes of affordable housing development as provided by this chapter.

(b)iiThe governing body of a municipality that adopts an urban land bank program shall establish or approve a land bank for the purpose of acquiring, holding, and transferring unimproved real property under this chapter.

Sec.i379E.005.iiQUALIFIED PARTICIPATING DEVELOPER. To qualify to participate in an urban land bank program, a developer must:

(1)iihave developed three or more housing units within the three-year period preceding the submission of a proposal to the land bank seeking to acquire real property from the land bank;

(2)iihave a development plan approved by the municipality for the land bank property; and

(3)iimeet any other requirements adopted by the municipality in the urban land bank plan.

Sec.i379E.006.iiURBAN LAND BANK PLAN. (a)iiA municipality that adopts an urban land bank program shall operate the program in conformance with an urban land bank plan.

(b)iiThe governing body of a municipality that adopts an urban land bank program shall adopt a plan annually. The plan may be amended from time to time.

4998 80th Legislature — Regular Session 68th Day


(c)iiIn developing the plan, the municipality shall consider other housing plans adopted by the municipality, including the comprehensive plan submitted to the United States Department of Housing and Urban Development and all fair housing plans and policies adopted or agreed to by the municipality.

(d)iiThe plan must include the following:

(1)iia list of community housing development organizations eligible to participate in the right of first refusal provided by Section 379E.011;

(2)iia list of the parcels of real property that may become eligible for sale to the land bank during the next year;

(3)iithe municipality's plan for affordable housing development on those parcels of real property; and

(4)iithe sources and amounts of money anticipated to be available from the municipality for subsidies for development of affordable housing in the municipality, including any money specifically available for housing developed under the program, as approved by the governing body of the municipality at the time the plan is adopted.

Sec.i379E.007.iiPUBLIC HEARING ON PROPOSED PLAN. (a)iiBefore adopting a plan, a municipality shall hold a public hearing on the proposed plan.

(b)iiThe city manager or the city manager's designee shall provide notice of the hearing to all community housing development organizations and to neighborhood associations identified by the municipality as serving the neighborhoods in which properties anticipated to be available for sale to the land bank under this chapter are located.

(c)iiThe city manager or the city manager's designee shall make copies of the proposed plan available to the public not later than the 60th day before the date of the public hearing.

Sec.i379E.008.iiPRIVATE SALE TO LAND BANK. (a)iiNotwithstanding any other law and except as provided by Subsection (f), property that is ordered sold pursuant to foreclosure of a tax lien may be sold in a private sale to a land bank by the officer charged with the sale of the property without first offering the property for sale as otherwise provided by Section 34.01, Tax Code, if:

(1)iithe market value of the property as specified in the judgment of foreclosure is less than the total amount due under the judgment, including all taxes, penalties, and interest, plus the value of nontax liens held by a taxing unit and awarded by the judgment, court costs, and the cost of the sale;

(2)iithe property is not improved with a building or buildings;

(3)iithere are delinquent taxes on the property for a total of at least five years; and

(4)iithe municipality has executed with the other taxing units that are parties to the tax suit an interlocal agreement that enables those units to agree to participate in the program while retaining the right to withhold consent to the sale of specific properties to the land bank.

(b)iiA sale of property for use in connection with the program is a sale for a public purpose.

Saturday, May 26, 2007 SENATE JOURNAL 4999


(c)iiIf the person being sued in a suit for foreclosure of a tax lien does not contest the market value of the property in the suit, the person waives the right to challenge the amount of the market value determined by the court for purposes of the sale of the property under Section 33.50, Tax Code.

(d)iiFor any sale of property under this chapter, each person who was a defendant to the judgment, or that person's attorney, shall be given, not later than the 90th day before the date of sale, written notice of the proposed method of sale of the property by the officer charged with the sale of the property. Notice must be given in the manner prescribed by Rule 21a, Texas Rules of Civil Procedure.

(e)iiAfter receipt of the notice required by Subsection (d) and before the date of the proposed sale, the owner of the property subject to sale may file with the officer charged with the sale a written request that the property not be sold in the manner provided by this chapter.

(f)iiIf the officer charged with the sale receives a written request as provided by Subsection (e), the officer shall sell the property as otherwise provided in Section 34.01, Tax Code.

(g)iiThe owner of the property subject to sale may not receive any proceeds of a sale under this chapter. However, the owner does not have any personal liability for a deficiency of the judgment as a result of a sale under this chapter.

(h)iiNotwithstanding any other law, if consent is given by the taxing units that are a party to the judgment, property may be sold to the land bank for less than the market value of the property as specified in the judgment or less than the total of all taxes, penalties, and interest, plus the value of nontax liens held by a taxing unit and awarded by the judgment, court costs, and the cost of the sale.

(i)iiThe deed of conveyance of the property sold to a land bank under this section conveys to the land bank the right, title, and interest acquired or held by each taxing unit that was a party to the judgment, subject to the right of redemption.

Sec.i379E.009.iiSUBSEQUENT RESALE BY LAND BANK. (a)iiEach subsequent resale of property acquired by a land bank under this chapter must comply with the conditions of this section.

(b)iiWithin the three-year period following the date of acquisition, the land bank must sell a property to a qualified participating developer for the purpose of construction of affordable housing for sale or rent to low income households. If after three years a qualified participating developer has not purchased the property, the property shall be transferred from the land bank to the taxing units who were parties to the judgment for disposition as otherwise allowed under the law.

(c)iiUnless the municipality increases the amount in its plan, the number of properties acquired by a qualified participating developer under this section on which development has not been completed may not at any time exceed three times the annual average residential production completed by the qualified participating developer during the preceding two-year period as determined by the municipality.

(d)iiThe deed conveying a property sold by the land bank must include a right of reverter so that, if the qualified participating developer does not apply for a construction permit and close on any construction financing within the two-year period following the date of the conveyance of the property from the land bank to the qualified participating developer, the property will revert to the land bank for

5000 80th Legislature — Regular Session 68th Day


subsequent resale to another qualified participating developer or conveyance to the taxing units who were parties to the judgment for disposition as otherwise allowed under the law.

Sec.i379E.010.iiRESTRICTIONS ON OCCUPANCY AND USE OF PROPERTY. (a)iiThe land bank shall impose deed restrictions on property sold to qualified participating developers requiring the development and sale or rental of the property to low income households.

(b)iiAt least 25 percent of the land bank properties sold during any given fiscal year to be developed for sale shall be deed restricted for sale to households with gross household incomes not greater than 60 percent of the area median family income, adjusted for household size, for the metropolitan statistical area in which the municipality is located, as determined annually by the United States Department of Housing and Urban Development.

(c)iiIf property is developed for rental housing, the deed restrictions must be for a period of not less than 20 years and must require that:

(1)ii100 percent of the rental units be occupied by and affordable to households with incomes not greater than 60 percent of area median family income, based on gross household income, adjusted for household size, for the metropolitan statistical area in which the municipality is located, as determined annually by the United States Department of Housing and Urban Development;

(2)ii40 percent of the units be occupied by and affordable to households with incomes not greater than 50 percent of area median family income, based on gross household income, adjusted for household size, for the metropolitan statistical area in which the municipality is located, as determined annually by the United States Department of Housing and Urban Development; or

(3)ii20 percent of the units be occupied by and affordable to households with incomes not greater than 30 percent of area median family income, based on gross household income, adjusted for household size, for the metropolitan statistical area in which the municipality is located, as determined annually by the United States Department of Housing and Urban Development.

(d)iiThe deed restrictions under Subsection (c) must require the owner to file an annual occupancy report with the municipality on a reporting form provided by the municipality. The deed restrictions must also prohibit any exclusion of an individual or family from admission to the development based solely on the participation of the individual or family in the housing choice voucher program under Section 8, United States Housing Act of 1937 (42 U.S.C. Section 1437f), as amended.

(e)iiExcept as otherwise provided by this section, if the deed restrictions imposed under this section are for a term of years, the deed restrictions shall renew automatically.

(f)iiThe land bank or the governing body of the municipality may modify or add to the deed restrictions imposed under this section. Any modifications or additions made by the governing body of the municipality must be adopted by the municipality as part of its plan and must comply with the restrictions set forth in Subsections (b), (c), and (d).

Sec.i379E.011.iiRIGHT OF FIRST REFUSAL. (a)iiIn this section, "qualified organization" means a community housing development organization that:

Saturday, May 26, 2007 SENATE JOURNAL 5001


(1)iicontains within its designated geographical boundaries of operation, as set forth in its application for certification filed with and approved by the municipality, a portion of the property that the land bank is offering for sale;

(2)iihas built at least three single-family homes or duplexes or one multifamily residential dwelling of four or more units in compliance with all applicable building codes within the preceding two-year period and within the organization's designated geographical boundaries of operation; and

(3)iiwithin the preceding three-year period has developed or rehabilitated housing units within a two-mile radius of the property that the land bank is offering for sale.

(b)iiThe land bank shall first offer a property for sale to qualified organizations.

(c)iiNotice must be provided to the qualified organizations by certified mail, return receipt requested, not later than the 60th day before the beginning of the period in which a right of first refusal may be exercised.

(d)iiThe municipality shall specify in its plan the period during which the right of first refusal provided by this section may be exercised by a qualified organization. That period must be at least nine months but not more than 26 months from the date of the deed of conveyance of the property to the land bank.

(e)iiIf the land bank conveys the property to a qualified organization before the expiration of the period specified by the municipality under Subsection (d), the interlocal agreement executed under Section 379E.008(a)(4) must provide tax abatement for the property until the expiration of that period.

(f)iiDuring the specified period, the land bank may not sell the property to a qualified participating developer other than a qualified organization. If all qualified organizations notify the land bank that they are declining to exercise their right of first refusal during the specified period, or if an offer to purchase the property is not received from a qualified organization during that period, the land bank may sell the property to any other qualified participating developer at the same price that the land bank offered the property to the qualified organizations.

(g)iiIn its plan, the municipality shall establish the amount of additional time, if any, that a property may be held in the land bank once an offer has been received and accepted from a qualified organization or other qualified participating developer.

(h)iiIf more than one qualified organization expresses an interest in exercising its right of first refusal, the organization that has designated the most geographically compact area encompassing a portion of the property shall be given priority.

(i)iiIn its plan, the municipality may provide for other rights of first refusal for any other nonprofit corporation exempted from federal income tax under Section 501(c)(3), Internal Revenue Code of 1986, as amended, provided that the preeminent right of first refusal is provided to qualified organizations as provided by this section.

(j)iiThe land bank is not required to provide a right of first refusal to qualified organizations under this section if the land bank is selling property that reverted to the land bank under Section 379E.009(d).

Sec.i379E.012.iiOPEN RECORDS AND MEETINGS. The land bank shall comply with the requirements of Chapters 551 and 552, Government Code.

5002 80th Legislature — Regular Session 68th Day


Sec.i379E.013.iiRECORDS; AUDIT; REPORT. (a)iiThe land bank shall keep accurate minutes of its meetings and shall keep accurate records and books of account that conform with generally accepted principles of accounting and that clearly reflect the income and expenses of the land bank and all transactions in relation to its property.

(b)iiThe land bank shall file with the municipality not later than the 90th day after the close of the fiscal year annual audited financial statements prepared by a certified public accountant. The financial transactions of the land bank are subject to audit by the municipality.

(c)iiFor purposes of evaluating the effectiveness of the program, the land bank shall submit an annual performance report to the municipality not later than November 1 of each year in which the land bank acquires or sells property under this chapter. The performance report must include:

(1)iia complete and detailed written accounting of all money and properties received and disbursed by the land bank during the preceding fiscal year;

(2)iifor each property acquired by the land bank during the preceding fiscal year:

(A)iithe street address of the property;

(B)iithe legal description of the property;

(C)iithe date the land bank took title to the property;

(D)iithe name and address of the property owner of record at the time of the foreclosure;

(E)iithe amount of taxes and other costs owed at the time of the foreclosure; and

(F)iithe assessed value of the property on the tax roll at the time of the foreclosure;

(3)iifor each property sold by the land bank during the preceding fiscal year to a qualified participating developer:

(A)iithe street address of the property;

(B)iithe legal description of the property;

(C)iithe name and mailing address of the developer;

(D)iithe purchase price paid by the developer;

(E)iithe maximum incomes allowed for the households by the terms of the sale; and

(F)iithe source and amount of any public subsidy provided by the municipality to facilitate the sale or rental of the property to a household within the targeted income levels;

(4)iifor each property sold by a qualified participating developer during the preceding fiscal year, the buyer's household income and a description of all use and sale restrictions; and

(5)iifor each property developed for rental housing with an active deed restriction, a copy of the most recent annual report filed by the owner with the land bank.

Saturday, May 26, 2007 SENATE JOURNAL 5003


(d)iiThe land bank shall maintain in its records for inspection a copy of the sale settlement statement for each property sold by a qualified participating developer and a copy of the first page of the mortgage note with the interest rate and indicating the volume and page number of the instrument as filed with the county clerk.

(e)iiThe land bank shall provide copies of the performance report to the taxing units who were parties to the judgment of foreclosure and shall provide notice of the availability of the performance report for review to the organizations and neighborhood associations identified by the municipality as serving the neighborhoods in which properties sold to the land bank under this chapter are located.

(f)iiThe land bank and the municipality shall maintain copies of the performance report available for public review.

SECTIONi34.iiSection 11.18, Tax Code, is amended by amending Subsection (d) and adding Subsection (o) to read as follows:

(d)iiA charitable organization must be organized exclusively to perform religious, charitable, scientific, literary, or educational purposes and, except as permitted by Subsections (h) and (l), engage exclusively in performing one or more of the following charitable functions:

(1)iiproviding medical care without regard to the beneficiaries' ability to pay, which in the case of a nonprofit hospital or hospital system means providing charity care and community benefits in accordance with Section 11.1801;

(2)iiproviding support or relief to orphans, delinquent, dependent, or handicapped children in need of residential care, abused or battered spouses or children in need of temporary shelter, the impoverished, or victims of natural disaster without regard to the beneficiaries' ability to pay;

(3)iiproviding support to elderly persons, including the provision of recreational or social activities and facilities designed to address the special needs of elderly persons, or to the handicapped, without regard to the beneficiaries' ability to pay;

(4)iipreserving a historical landmark or site;

(5)iipromoting or operating a museum, zoo, library, theater of the dramatic or performing arts, or symphony orchestra or choir;

(6)iipromoting or providing humane treatment of animals;

(7)iiacquiring, storing, transporting, selling, or distributing water for public use;

(8)iianswering fire alarms and extinguishing fires with no compensation or only nominal compensation to the members of the organization;

(9)iipromoting the athletic development of boys or girls under the age of 18 years;

(10)iipreserving or conserving wildlife;

(11)iipromoting educational development through loans or scholarships to students;

(12)iiproviding halfway house services pursuant to a certification as a halfway house by the pardons and paroles division of the Texas Department of Criminal Justice;

5004 80th Legislature — Regular Session 68th Day


(13)iiproviding permanent housing and related social, health care, and educational facilities for persons who are 62 years of age or older without regard to the residents' ability to pay;

(14)iipromoting or operating an art gallery, museum, or collection, in a permanent location or on tour, that is open to the public;

(15)iiproviding for the organized solicitation and collection for distributions through gifts, grants, and agreements to nonprofit charitable, education, religious, and youth organizations that provide direct human, health, and welfare services;

(16)iiperforming biomedical or scientific research or biomedical or scientific education for the benefit of the public;

(17)iioperating a television station that produces or broadcasts educational, cultural, or other public interest programming and that receives grants from the Corporation for Public Broadcasting under 47 U.S.C. Section 396, as amended;

(18)iiproviding housing for low-income and moderate-income families, for unmarried individuals 62 years of age or older, for handicapped individuals, and for families displaced by urban renewal, through the use of trust assets that are irrevocably and, pursuant to a contract entered into before December 31, 1972, contractually dedicated on the sale or disposition of the housing to a charitable organization that performs charitable functions described by Subdivision (9);

(19)iiproviding housing and related services to persons who are 62 years of age or older in a retirement community, if the retirement community provides independent living services, assisted living services, and nursing services to its residents on a single campus:

(A)iiwithout regard to the residents' ability to pay; or

(B)iiin which at least four percent of the retirement community's combined net resident revenue is provided in charitable care to its residents; [or]

(20)iiproviding housing on a cooperative basis to students of an institution of higher education if:

(A)iithe organization is exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986, as amended, by being listed as an exempt entity under Section 501(c)(3) of that code;

(B)iimembership in the organization is open to all students enrolled in the institution and is not limited to those chosen by current members of the organization;

(C)iithe organization is governed by its members; and

(D)iithe members of the organization share the responsibility for managing the housing; or

(21)iiacquiring, holding, and transferring unimproved real property under an urban land bank program established under Chapter 379E, Local Government Code, as or on behalf of a land bank.

(o)iiFor purposes of Subsection (a)(2), real property acquired, held, and transferred by an organization that performs the function described by Subsection (d)(21) is considered to be used exclusively by the qualified charitable organization to perform that function.

Saturday, May 26, 2007 SENATE JOURNAL 5005


SECTIONi35.iiSection 403.302, Government Code, as amended by this Act, applies only to an annual school district property value study conducted for a tax year that begins on or after January 1, 2008.

SECTIONi36.iiThe changes in law made by this Act to Section 214.003, Local Government Code, apply only to a receivership established on or after the effective date of this Act. A receivership established before the effective date of this Act is governed by the law in effect when the receivership was established, and the former law is continued in effect for that purpose.

SECTIONi37.iiSection 379D.015, Local Government Code, as added by this Act, applies only to a cause of action that accrues on or after the effective date of this Act and concerns property that is first purchased by a land bank under Section 379D.015, Local Government Code, on or after the effective date of this Act.

SECTIONi38.iiSection 11.18, Tax Code, as amended by this Act, applies only to an ad valorem tax year that begins on or after the effective date of this Act.

SECTIONi39.ii(a)iiThe Texas Department of Housing and Community Affairs shall adopt the rules required by Section 2306.1073, Government Code, as added by this Act, not later than December 1, 2007.

(b)iiThe changes in law made by this Act apply only to an application for assistance from the Texas First-Time Homebuyer Program that is filed on or after January 1, 2008.

SECTIONi40.iiThe changes in law made by this Act relating to the evaluation of applications for financial assistance administered by the Texas Department of Housing and Community Affairs apply only to an application submitted on or after the effective date of this Act. An application submitted before the effective date of this Act is governed by the law in effect when the application was submitted, and the former law is continued in effect for that purpose.

SECTIONi41.iiThe change in law made by this Act applies only to an application for a low income housing tax credit filed on or after the effective date of this Act. An application filed before the effective date of this Act is governed by the law in effect on the date the application was filed, and the former law is continued in effect for that purpose.

SECTIONi42.iiThe following provisions of the Government Code are repealed:

(1)iiSections 2306.021, 2306.062, 2306.0631, 2306.0661, Subsection (h), Section 2306.0721, Section 2306.079, Subsection (e), Section 2306.081, Section 2306.254, Subsections (b), (c), and (d), Section 2306.257, and Section 2306.806;

(2)iiSubchapter N, Chapter 2306;

(3)iiSubchapter O, Chapter 2306;

(4)iiSubchapter BB, Chapter 2306;

(5)iiSubchapter CC, Chapter 2306;

(6)iiSubchapter EE, Chapter 2306; and

(7)iiSubsection (g), Section 2306.6710, Government Code, is repealed.

SECTIONi43.iiIt is the intent of the legislature that the passage by the 80th Legislature, Regular Session, 2007, of another bill that amends Chapter 2306, Government Code, and the amendments made by this Act shall be harmonized, if possible, as provided by Subsection (b), Section 311.025, Government Code, so that effect may be given to each. If the amendments made by this Act to Chapter 2306,

5006 80th Legislature — Regular Session 68th Day


Government Code, and the amendments made to Chapter 2306, Government Code, by any other bill are irreconcilable, it is the intent of the legislature that this Act prevail, regardless of the relative dates of enactment of this Act and the other bill or bills, but only to the extent that any differences are irreconcilable.

SECTIONi44.iiThis Act takes effect on September 1, 2007.

The Conference Committee Report on SBi1908 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 828

Senator Shapiro submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi828 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

SHAPIRO HOCHBERG
CARONA BRANCH
NELSON EISSLER
SHAPLEIGH PATRICK
WILLIAMS
On the part of the Senate On the part of the House

The Conference Committee Report on HBi828 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1846

Senator Duncan submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Saturday, May 26, 2007 SENATE JOURNAL 5007


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi1846 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

DUNCAN TRUITT
FRASER KEFFER
OGDEN MCCLENDON
WILLIAMS OTTO
KOLKHORST
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to funding for, and benefits provided under, the Teacher Retirement System of Texas.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 825.402, Government Code, is amended to read as follows:

Sec.i825.402.iiRATE OF MEMBER CONTRIBUTIONS. (a)iiThe rate of contributions for each member of the retirement system is:

(1)iifive percent of the member's annual compensation or $180, whichever is less, for service rendered after August 31, 1937, and before September 1, 1957;

(2)iisix percent of the first $8,400 of the member's annual compensation for service rendered after August 31, 1957, and before September 1, 1969;

(3)iisix percent of the member's annual compensation for service rendered after August 31, 1969, and before the first day of the 1977-78 school year;

(4)ii6.65 percent of the member's annual compensation for service rendered after the last day of the period described by Subdivision (3) and before September 1, 1985; and

(5)ii6.4 percent of the member's annual compensation for service rendered after August 31, 1985, subject to Subsection (b).

(b)iiSubject to Subsection (c), the board of trustees may by order require that the rate of contributions for each member of the retirement system under Subsection (a) is increased to not more than 6.58 percent of the member's annual compensation for service rendered after the date of the order if:

(1)iithe legislature by law requires or authorizes the board of trustees to pay a supplemental payment to specified annuitants; and

(2)iithe board of trustees finds, as of the time the payment is to be made, that after the payment is made the amortization period for the unfunded actuarial liabilities of the retirement system would exceed 30 years by one or more years.

(c)iiNotwithstanding any other law, the board of trustees may not make a supplemental payment required or authorized by the legislature by law, and may not impose an increase in the rate of contributions under Subsection (b), if the board of

5008 80th Legislature — Regular Session 68th Day


trustees finds that after making the payment and imposing the increase the amortization period for the unfunded actuarial liabilities of the retirement system would exceed 30 years by one or more years.

(d)iiNotwithstanding any other law, the board of trustees may delay making a supplemental payment required or authorized by the legislature by law as necessary to make the determinations required under Subsections (b) and (c).

SECTIONi2.iiSection 825.404, Government Code, is amended by amending Subsection (a) and adding Subsection (a-1) to read as follows:

(a)iiDuring each fiscal year, the state shall contribute to the retirement system an amount equal to at least six and not more than 10 percent of the aggregate annual compensation of all members of the retirement system during that fiscal year. The amount of the state contribution made under this section may not be less than the amount contributed by members during that fiscal year in accordance with Section 825.402.

(a-1)iiDuring each fiscal year of the state fiscal biennium beginning September 1, 2007, the state shall contribute to the retirement system an amount equal to 6.58 of the aggregate annual compensation of all members of the retirement system during that fiscal year. This subsection expires September 1, 2009.

SECTIONi3.iiSubsection (e), Section 825.4092, Government Code, is amended to read as follows:

(e)iiThe amounts required to be paid under Subsections (b) and (c) are not required to be paid by a reporting employer for a retiree who retired from [was reported under] the retirement system [rules in effect for the report month of January 2005 by:

[(1)iithat reporting employer; or

[(2)iianother employer, if both employers are school districts that consolidated into a consolidated school district on or] before September 1, 2005.

SECTIONi4.iiSubsection (b), Section 1575.204, Insurance Code, is amended to read as follows:

(b)iiEach state fiscal year, each employer who reports to the retirement system under Section 824.6022, Government Code, the employment of a retiree who is enrolled in the group program shall contribute to the fund the difference, if any, between the contribution amount that the reported retiree is required to pay for the retiree and any enrolled dependents to participate in the group program and the full cost of the retiree's and enrolled dependents' participation in the group program, as determined by the trustee. The amounts required to be paid under this subsection are not required to be paid by a reporting employer for a retiree who retired from the [was reported by that employer under] retirement system before September 1, [rules in effect for the report month of January] 2005.

SECTIONi5.ii(a)iiThe Teacher Retirement System of Texas shall make a one-time supplemental payment of a retirement or death benefit, as provided by this section.

(b)iiThe supplemental payment is payable not later than September 2007 and, to the extent practicable, on a date or dates that coincide with the regular annuity payment payable to each eligible annuitant.

(c)iiThe amount of the supplemental payment is equal to the lesser of:

Saturday, May 26, 2007 SENATE JOURNAL 5009


(1)iithe gross amount of the regular annuity payment to which the eligible annuitant is otherwise entitled for the month of August 2007; or

(2)ii$2,400.

(d)iiThe supplemental payment is payable without regard to any forfeiture of benefits under Section 824.601, Government Code. The Teacher Retirement System of Texas shall make applicable tax withholding and other legally required deductions before disbursing the supplemental payment. A supplemental payment under this section is in addition to and not in lieu of the regular monthly annuity payment to which the eligible annuitant is otherwise entitled.

(e)iiSubject to Subsection (f) of this section, to be eligible for the supplemental payment, a person must be, for the month of August 2007, and disregarding any forfeiture of benefits under Section 824.601, Government Code, an annuitant eligible to receive:

(1)iia standard retirement annuity payment;

(2)iian optional retirement annuity payment as either a retiree or beneficiary;

(3)iia life annuity payment under Subdivision (4), Subsection (a), Section 824.402, Government Code;

(4)iian annuity for a guaranteed period of 60 months under Subdivision (3), Subsection (a), Section 824.402, Government Code; or

(5)iian alternate payee annuity payment under Section 804.005, Government Code.

(f)iiIf the annuitant is a retiree or a beneficiary under an optional retirement payment plan, to be eligible for the supplemental payment, the effective date of the retirement of the member of the Teacher Retirement System of Texas must have been on or before December 31, 2006. If the annuitant is a beneficiary under Subdivision (3) or (4), Subsection (a), Section 824.402, Government Code, to be eligible for the supplemental payment, the date of death of the member of the retirement system must have been on or before December 31, 2006. The supplemental payment shall be made to an alternate payee who is an annuitant under Section 804.005, Government Code, only if the annuity payment to the alternate payee commenced on or before Decemberi31, 2006. The supplemental payment is in addition to the guaranteed number of payments under Subdivision (3), Subsection (a), Section 824.402, Government Code, Subdivision (3) or (4), Subsection (c), Section 824.204, Government Code, or Subdivision (3) or (4), Subsection (c), Section 824.308, Government Code, and may not be counted as one of the guaranteed monthly payments.

(g)iiThe supplemental payment does not apply to payments under:

(1)iiSubsection (a), Section 824.304, Government Code, relating to disability retirees with less than 10 years of service credit;

(2)iiSubsection (b), Section 824.804, Government Code, relating to participants in the deferred retirement option plan with regard to payments from their deferred retirement option plan accounts;

(3)iiSubsection (a), Section 824.501, Government Code, relating to retiree survivor beneficiaries who receive a survivor annuity in an amount fixed by statute; or

5010 80th Legislature — Regular Session 68th Day


(4)iiSubsection (a), Section 824.404, Government Code, relating to active member survivor beneficiaries who receive a survivor annuity in an amount fixed by statute.

(h)iiExcept as provided by this section, the board of trustees of the Teacher Retirement System of Texas shall determine the eligibility for and the amount and timing of a supplemental payment and the manner in which the payment is made.

SECTIONi6.iiSubsection (a), Section 825.404, Government Code, as amended by this Act, applies beginning with the fiscal year that begins September 1, 2007.

SECTIONi7.iiSection 825.4092, Government Code, as amended by this Act, applies only to an employer contribution required to be made under that section on or after September 1, 2007. An employer contribution required to be made before September 1, 2007, is governed by the law as it existed at the time the contribution was required to be made, and that law is continued in effect for that purpose.

SECTIONi8.iiThis Act takes effect September 1, 2007.

The Conference Committee Report on SBi1846 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1521

Senator Hegar submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi1521 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

HEGAR KOLKHORST
BRIMER R. COOK
CARONA CROWNOVER
NICHOLS GATTIS
ZAFFIRINI HOPSON
On the part of the Senate On the part of the House

The Conference Committee Report on HBi1521 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2072

Senator Zaffirini submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Saturday, May 26, 2007 SENATE JOURNAL 5011


Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2072 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

ZAFFIRINI GUILLEN
AVERITT CREIGHTON
BRIMER ESCOBAR
HINOJOSA HANCOCK
ELTIFE PENA
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2072 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 1951

Senator Wentworth submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi1951 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

WENTWORTH HARTNETT
HINOJOSA GONZALES
OGDEN GOOLSBY
DUNCAN HOPSON
HARRIS HUGHES
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to the creation, operation, and officers of certain courts and juvenile boards.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.ii(a)iiEffective September 15, 2008, Subchapter C, Chapter 24, Government Code, is amended by adding Section 24.542 to read as follows:

Sec.i24.542.ii397TH JUDICIAL DISTRICT (GRAYSON COUNTY). The 397th Judicial District is composed of Grayson County.

(b)iiThe 397th Judicial District is created on September 15, 2008.

5012 80th Legislature — Regular Session 68th Day


(c)iiEffective January 1, 2010, the heading to Section 24.106, Government Code, is amended to read as follows:

Sec.i24.106.ii6TH JUDICIAL DISTRICT ([FANNIN,] LAMAR[,] AND RED RIVER COUNTIES).

(d)iiEffective January 1, 2010, Subsection (a), Section 24.106, Government Code, is amended to read as follows:

(a)iiThe 6th Judicial District is composed of [Fannin,] Lamar[,] and Red River counties.

(e)iiEffective January 1, 2010, Section 24.482, Government Code, is amended to read as follows:

Sec.i24.482.ii336TH JUDICIAL DISTRICT (FANNIN COUNTY [AND GRAYSON COUNTIES]). [(a)]iiThe 336th Judicial District is composed of Fannin County [and Grayson counties].

(f)iiThe local administrative district judge for the 6th Judicial District:

(1)iishall transfer all cases from Fannin County that are pending in the 6th District Court on January 1, 2010, to the 336th District Court; and

(2)iimay transfer any case from Fannin County that is pending or filed in the 6th District Court on or after September 15, 2008, to the 336th District Court.

(g)iiWhen a case is transferred as provided by Subsection (f) of this section, all processes, writs, bonds, recognizances, or other obligations issued from the 6th District Court are returnable to the 336th District Court as if originally issued by that court. The obligees on all bonds and recognizances taken in and for the 6th District Court and all witnesses summoned to appear in the 6th District Court are required to appear before the 336th District Court as if originally required to appear before that court.

(h)iiThe local administrative district judge for the 336th Judicial District:

(1)iishall transfer all cases from Grayson County that are pending in the 336th District Court on January 1, 2010, to the 397th District Court; and

(2)iimay transfer any case from Grayson County that is pending or filed in the 336th District Court on or after September 15, 2008, to the 397th District Court.

(i)iiWhen a case is transferred as provided by Subsection (h) of this section, all processes, writs, bonds, recognizances, or other obligations issued from the 336th District Court are returnable to the 397th District Court as if originally issued by that court. The obligees on all bonds and recognizances taken in and for the 336th District Court and all witnesses summoned to appear in the 336th District Court are required to appear before the 397th District Court as if originally required to appear before that court.

SECTIONi2.ii(a)iiSubchapter C, Chapter 24, Government Code, is amended by adding Section 24.562 to read as follows:

Sec.i24.562.ii418TH JUDICIAL DISTRICT (MONTGOMERY COUNTY). (a)iiThe 418th Judicial District is composed of Montgomery County.

(b)iiThe 418th District Court shall give preference to family law matters.

(b)iiThe 418th Judicial District is created on the effective date of this section.

SECTIONi3.ii(a)iiEffective October 1, 2007, Subchapter C, Chapter 24, Government Code, is amended by adding Section 24.567 to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 5013


Sec.i24.567.ii423RD JUDICIAL DISTRICT (BASTROP COUNTY). The 423rd Judicial District is composed of Bastrop County.

(b)iiThe 423rd Judicial District is created October 1, 2007.

(c)iiSubsection (a), Section 44.111, Government Code, is amended to read as follows:

(a)iiThe criminal district attorney of Bastrop County shall attend each term and session of the district courts [court] in Bastrop County and each term and session of the inferior courts of the county held for the transaction of criminal business. He shall exclusively represent the state in all criminal matters before those courts and any other court in which Bastrop County has pending business.

SECTIONi4.ii(a)iiEffective January 1, 2009, Subchapter C, Chapter 24, Government Code, is amended by adding Section 24.573 to read as follows:

Sec.i24.573.ii429TH JUDICIAL DISTRICT (COLLIN COUNTY). The 429th Judicial District is composed of Collin County.

(b)iiEffective January 1, 2009, the 429th Judicial District is created.

SECTIONi5.ii(a)iiSubchapter C, Chapter 24, Government Code, is amended by adding Section 24.579 to read as follows:

Sec.i24.579.ii435TH JUDICIAL DISTRICT (MONTGOMERY COUNTY). (a)iiThe 435th Judicial District is composed of Montgomery County.

(b)iiThe 435th District Court shall give preference to:

(1)iicivil commitment proceedings under Chapter 841, Health and Safety Code;

(2)iicriminal cases involving offenses under Section 841.085, Health and Safety Code, and Article 62.203, Code of Criminal Procedure; and

(3)iiother matters that may be assigned by the administrative judge.

(c)iiNotwithstanding any other law, the state shall pay the salaries of and other expenses related to the court reporter appointed for the 435th District Court under Section 52.041 and the court coordinator appointed for the court under Section 74.101. The salaries of the court reporter and court coordinator shall be set in amounts commensurate with the salaries paid by other district courts for those positions.

(b)iiThe 435th Judicial District is created on the effective date of this section.

SECTIONi6.ii(a)iiSubchapter C, Chapter 24, Government Code, is amended by adding Section 24.589 to read as follows:

Sec.i24.589.ii445TH JUDICIAL DISTRICT (CAMERON COUNTY). (a)iiThe 445th Judicial District is composed of Cameron County.

(b)iiThe 445th District Court shall give preference to criminal law cases.

(b)iiThe 445th Judicial District is created on the effective date of this section.

SECTIONi7.ii(a)iiSubchapter C, Chapter 24, Government Code, is amended by adding Section 24.592 to read as follows:

Sec.i24.592.ii448TH JUDICIAL DISTRICT (EL PASO COUNTY). The 448th Judicial District is composed of El Paso County.

(b)iiThe 448th Judicial District is created on the effective date of this section.

SECTIONi8.ii(a)iiSubchapter C, Chapter 24, Government Code, is amended by adding Section 24.593 to read as follows:

Sec.i24.593.ii449TH JUDICIAL DISTRICT (HIDALGO COUNTY). (a)iiThe 449th Judicial District is composed of Hidalgo County.

5014 80th Legislature — Regular Session 68th Day


(b)iiThe 449th District Court shall give preference to juvenile matters.

(b)iiThe 449th Judicial District is created on the effective date of this section.

SECTIONi9.ii(a)iiSubchapter C, Chapter 24, Government Code, is amended by adding Section 24.5995 to read as follows:

Sec.i24.5995.ii506TH JUDICIAL DISTRICT (GRIMES AND WALLER COUNTIES). The 506th Judicial District is composed of Grimes and Waller Counties.

(b)iiSection 24.109, Government Code, is amended to read as follows:

Sec.i24.109.ii9TH JUDICIAL DISTRICT (MONTGOMERY COUNTY [AND WALLER COUNTIES]). (a)iiThe 9th Judicial District is composed of Montgomery County [and Waller counties].

(b)ii[The 9th and 155th district courts have concurrent jurisdiction in Waller County.

[(c)]iiThe terms of the 9th District Court begin[:

[(1)iiin Montgomery County] on the first Monday in January and the first Monday in July[; and

[(2)iiin Waller County on the first Monday in January and the first Monday in July].

(c)iiThe local administrative district judge shall transfer all cases from Waller County that are pending in the 9th District Court to the 506th District Court on the date the 506th District Court is created.

(d)iiWhen a case is transferred as provided by Subsection (c) of this section, all processes, writs, bonds, recognizances, or other obligations issued from the 9th District Court are returnable to the 506th District Court as if originally issued by that court. The obligees on all bonds and recognizances taken in and for the 9th District Court and all witnesses summoned to appear in the 9th District Court are required to appear before the 506th District Court as if originally required to appear before that court.

(e)iiThe 506th Judicial District is created on the effective date of this section.

(f)iiEffective September 1, 2008, Section 24.455, Government Code, is amended to read as follows:

Sec.i24.455.ii278TH JUDICIAL DISTRICT ([GRIMES,] LEON, MADISON, AND WALKER COUNTIES). The 278th Judicial District is composed of [Grimes,] Leon, Madison, and Walker counties.

(g)iiThe local administrative district judge shall transfer all cases from Grimes County that are pending in the 278th District Court on September 1, 2008, to the 506th District Court.

(h)iiWhen a case is transferred as provided by Subsection (g) of this section, all processes, writs, bonds, recognizances, or other obligations issued from the 278th District Court are returnable to the 506th District Court as if originally issued by that court. The obligees on all bonds and recognizances taken in and for the 278th District Court and all witnesses summoned to appear in the 278th District Court are required to appear before the 506th District Court as if originally required to appear before that court.

(i)iiSubsection (e), Section 43.1745, Government Code, is amended to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 5015


(e)iiThe district attorney must be at least 30 years of age, must have been a practicing attorney in this state for at least five years, and must have been a resident of Grimes County for at least the time required under Section 141.001, Election Code [three years immediately preceding election or appointment].

(j)iiEffective September 1, 2008, Section 43.1745, Government Code, is redesignated as Section 43.183, Government Code, and amended to read as follows:

Sec.i43.183i[43.1745].ii506TH [278TH] JUDICIAL DISTRICT. (a)iiThe voters of Grimes County elect a district attorney for the 506th [278th] Judicial District who represents the state only in that county.

(b)iiThe district attorney shall attend each term and session of the district courts and all other courts, except municipal courts, in Grimes County and, unless otherwise provided by law, shall exclusively represent the state in all criminal matters in those courts.

(c)iiThe district attorney has no power, duty, or privilege relating to family law and juvenile matters, including matters involving children's protective services, protective orders under Chapter 71, Family Code, orders under Chapter 159, Family Code, proceedings under Title 3, Family Code, civil commitment matters under Subtitle C, Title 7, Health and Safety Code, or a quo warranto or removal case, except, that if the county attorney fails or refuses to act in a quo warranto or removal case, the district attorney has the power, duty, and privilege to bring a removal of quo warranto action.

(d)iiThe district attorney has no power, duty, or privilege in any civil matter pending before any court.

(e)iiThe district attorney must be at least 30 years of age, must have been a practicing attorney in this state for at least five years, and must have been a resident of Grimes County for at least the time required under Section 141.001, Election Code [three years immediately preceding election or appointment].

(f)iiThe district attorney may not engage in the private practice of law.

(g)iiThe district attorney may, for the purpose of conducting the affairs of the office, appoint assistant district attorneys, investigators, and other necessary staff. The salaries of the members of the staff of the district attorney's office shall be paid from the officer's salary fund of the county with the approval of the commissioners court.

(k)iiThe person serving as district attorney for the 278th Judicial District on September 1, 2008, unless otherwise removed from office, continues to serve in that office as redesignated as the district attorney for the 506th Judicial District for the term to which elected or appointed.

(l)iiSubsection (d), Section 24.254, Government Code, is repealed.

SECTIONi10.ii(a)iiSubchapter D, Chapter 24, Government Code, is amended by adding Section 24.640 to read as follows:

Sec.i24.640.ii444TH JUDICIAL DISTRICT (CAMERON COUNTY). The 444th Judicial District is composed of Cameron County.

(b)iiThe 444th Judicial District is created on the effective date of this section.

SECTIONi11.ii(a)iiSubchapter E, Chapter 24, Government Code, is amended by adding Section 24.908 to read as follows:

5016 80th Legislature — Regular Session 68th Day


Sec.i24.908.iiEL PASO COUNTY CRIMINAL JUDICIAL DISTRICT NO. 1. (a)iiThe El Paso County Criminal Judicial District No. 1 is composed of El Paso County.

(b)iiThe El Paso County Criminal District Court No. 1 shall give primary preference to felony drug cases and associated civil cases emanating from those felony drug cases. The criminal district court shall give secondary preference to other criminal cases and associated civil cases emanating from those criminal cases.

(c)iiThe terms of the El Paso County Criminal District Court No. 1 begin on the third Mondays in April and September and the first Mondays in January, July, and November.

(d)iiThe El Paso County Criminal District Court No. 1 shall have a seal similar to the seal of a district court with "El Paso County Criminal District Court No. 1" engraved on the seal.

(b)iiThe El Paso County Criminal Judicial District No. 1 is created on the effective date of this section.

SECTIONi12.iiSection 43.119, Government Code, is amended to read as follows:

Sec.i43.119.ii33RD JUDICIAL DISTRICT. The voters of Blanco, Burnet, Llano, and San Saba Counties [the 33rd Judicial District] elect a district attorney for the 33rd and 424th Judicial Districts.

SECTIONi13.ii(a)iiSection 43.120, Government Code, is amended by amending Subsections (d) and (f) and adding Subsections (d-1), (d-2), and (g) to read as follows:

(d)iiThe commissioners courts of Culberson and Hudspeth Counties [counties] shall each pay to El Paso County the budgeted prosecution costs, which may not exceed a total of $90,000 for Culberson and Hudspeth Counties per fiscal year [$100 a month to be expended, on sworn claims of the district attorney approved by the Commissioners Court of El Paso County], for the preparation and conduct of criminal affairs of the district attorney's office, including compensation for assistants and other employees of the district attorney, applicable to their respective county. Each year the district attorney's office shall:

(1)iiprepare a budget and financial statement for the upcoming fiscal year; and

(2)iifile the budget and financial statement with the commissioners courts of Hudspeth and Culberson Counties.

(d-1)iiThe budget and financial statement required by Subsection (d) must contain:

(1)iithe budgeted prosecution costs for Culberson and Hudspeth Counties, with the costs for each county listed separately; and

(2)iiany additional information considered appropriate by the district attorney or required by the commissioners court of Culberson or Hudspeth County.

(d-2)iiHudspeth and Culberson Counties shall remit one-fourth of the budgeted prosecution costs applicable to the respective county to El Paso County not later than the last day of each fiscal quarter.

(f)iiEl Paso County is responsible for managing the funds expended by the district attorney for the preparation and conduct of criminal affairs of the district attorney's office, including funds to compensate assistants and other employees of the

Saturday, May 26, 2007 SENATE JOURNAL 5017


district attorney. Hudspeth and Culberson Counties shall remit one-fourth of the budgeted funds to El Paso County not later than the last day of each fiscal quarter [The assistants and other employees of the district attorney are compensated by the Commissioners Court of El Paso County]. The Commissioners Court of El Paso County must approve the number of assistants and other employees appointed by the district attorney and the amount of compensation of those employees.

(g)iiNothing in this section prevents El Paso County from entering into an interlocal agreement with Culberson or Hudspeth County in lieu of budgeting costs as provided by this section or Section 140.003, Local Government Code. An interlocal agreement under this subsection may not exceed $90,000 per fiscal year.

(b)iiThis section takes effect October 1, 2007.

SECTIONi14.iiSection 43.148, Government Code, is amended to read as follows:

Sec.i43.148.ii105TH JUDICIAL DISTRICT. (a)iiThe voters of Nueces County [the 105th Judicial District] elect a district attorney for the 105th Judicial District who[. The district attorney] has the same powers and duties as other district attorneys and serves all the district, county, and justice courts of Nueces County [and the district courts of Kleberg and Kenedy counties].

(b)iiThe district attorney shall attend each term and session of the district, county, and justice courts of Nueces County [and the district courts of Kleberg and Kenedy counties] and shall represent the state in criminal cases pending in those courts. The district attorney has control of any case heard on petition of writ of habeas corpus before any district or inferior court in the district.

(c)iiThe commissioners court [courts] of Nueces County [the counties comprising the district] may supplement the state salary of the district attorney. The amount of the supplement may not exceed $12,000 a year. [The supplemental salary must be paid proportionately by the commissioners court of each county according to the population of the county.] The supplemental salary may be paid from the officers' salary fund of the [a] county. If that fund is inadequate, the commissioners court may transfer the necessary funds from the general fund of the county.

SECTIONi15.iiSubchapter B, Chapter 43, Government Code, is amended by adding Section 43.182 to read as follows:

Sec.i43.182.iiDISTRICT ATTORNEY FOR KLEBERG AND KENEDY COUNTIES. (a)iiThe voters of Kleberg and Kenedy Counties elect a district attorney. The district attorney has the same powers and duties as other district attorneys and serves the district courts of Kleberg and Kenedy Counties.

(b)iiThe district attorney shall attend each term and session of the district courts of Kleberg and Kenedy Counties and shall represent the state in criminal cases pending in those courts. The district attorney has control of any case heard on petition of writ of habeas corpus before any district or inferior court in the district.

(c)iiThe commissioners courts of the counties comprising the district may supplement the state salary of the district attorney. The amount of the supplement may not exceed $12,000 a year. The supplemental salary must be paid proportionately by the commissioners court of each county according to the population of the county.

5018 80th Legislature — Regular Session 68th Day


The supplemental salary may be paid from the officers' salary fund of a county. If that fund is inadequate, the commissioners court may transfer the necessary funds from the general fund of the county.

SECTIONi16.iiSection 46.002, Government Code, is amended to read as follows:

Sec.i46.002.iiPROSECUTORS SUBJECT TO CHAPTER. This chapter applies to all county prosecutors and to the following state prosecutors:

(1)iithe district attorneys for Kenedy and Kleberg Counties and for the 1st, 2nd, 8th, 9th, 12th, 18th, 21st, 23rd, 25th, 26th, 27th, 29th, 31st, 32nd, 33rd, 34th, 35th, 36th, 38th, 39th, 42nd, 43rd, 47th, 49th, 50th, 51st, 52nd, 53rd, 63rd, 64th, 66th, 69th, 70th, 76th, 81st, 83rd, 84th, 85th, 88th, 90th, 97th, 100th, 105th, 106th, 110th, 112th, 118th, 119th, 123rd, 142nd, 145th, 156th, 159th, 173rd, 196th, 198th, 216th, 220th, 229th, 235th, 253rd, 258th, 259th, 266th, 268th, 271st, 278th, 286th, 329th, 349th, and 355th judicial districts;

(2)iithe criminal district attorneys for the counties of Anderson, Austin, Bastrop, Bexar, Bowie, Brazoria, Caldwell, Calhoun, Cass, Collin, Comal, Dallas, Deaf Smith, Denton, Eastland, Galveston, Grayson, Gregg, Harrison, Hays, Hidalgo, Jasper, Jefferson, Kaufman, Lubbock, McLennan, Madison, Navarro, Newton, Panola, Polk, Randall, Rockwall, San Jacinto, Smith, Tarrant, Taylor, Tyler, Upshur, Van Zandt, Victoria, Walker, Waller, Wichita, Wood, and Yoakum; and

(3)iithe county attorneys performing the duties of district attorneys in the counties of Andrews, Callahan, Cameron, Castro, Colorado, Crosby, Ellis, Falls, Fannin, Freestone, Lamar, Lamb, Lampasas, Lee, Limestone, Marion, Milam, Morris, Ochiltree, Orange, Rains, Red River, Robertson, Rusk, Terry, Webb, and Willacy.

SECTIONi17.iiEffective September 1, 2008, Section 46.002, Government Code, is amended to read as follows:

Sec.i46.002.iiPROSECUTORS SUBJECT TO CHAPTER. This chapter applies to all county prosecutors and to the following state prosecutors:

(1)iithe district attorneys for Kenedy and Kleberg Counties and for the 1st, 2nd, 8th, 9th, 12th, 18th, 21st, 23rd, 25th, 26th, 27th, 29th, 31st, 32nd, 33rd, 34th, 35th, 36th, 38th, 39th, 42nd, 43rd, 47th, 49th, 50th, 51st, 52nd, 53rd, 63rd, 64th, 66th, 69th, 70th, 76th, 81st, 83rd, 84th, 85th, 88th, 90th, 97th, 100th, 105th, 106th, 110th, 112th, 118th, 119th, 123rd, 142nd, 145th, 156th, 159th, 173rd, 196th, 198th, 216th, 220th, 229th, 235th, 253rd, 258th, 259th, 266th, 268th, 271st, [278th,] 286th, 329th, 349th, [and] 355th, and 506th judicial districts;

(2)iithe criminal district attorneys for the counties of Anderson, Austin, Bastrop, Bexar, Bowie, Brazoria, Caldwell, Calhoun, Cass, Collin, Comal, Dallas, Deaf Smith, Denton, Eastland, Galveston, Grayson, Gregg, Harrison, Hays, Hidalgo, Jasper, Jefferson, Kaufman, Lubbock, McLennan, Madison, Navarro, Newton, Panola, Polk, Randall, Rockwall, San Jacinto, Smith, Tarrant, Taylor, Tyler, Upshur, Van Zandt, Victoria, Walker, Waller, Wichita, Wood, and Yoakum; and

(3)iithe county attorneys performing the duties of district attorneys in the counties of Andrews, Callahan, Cameron, Castro, Colorado, Crosby, Ellis, Falls, Fannin, Freestone, Lamar, Lamb, Lampasas, Lee, Limestone, Marion, Milam, Morris, Ochiltree, Orange, Rains, Red River, Robertson, Rusk, Terry, Webb, and Willacy.

Saturday, May 26, 2007 SENATE JOURNAL 5019


SECTIONi18.iiEffective January 1, 2009, Section 46.002, Government Code, is amended to read as follows:

Sec.i46.002.iiPROSECUTORS SUBJECT TO CHAPTER. This chapter applies to all county prosecutors and to the following state prosecutors:

(1)iithe district attorneys for Kenedy and Kleberg Counties and for the 1st, 2nd, 8th, 9th, 12th, 18th, 21st, 23rd, 25th, 26th, 27th, 29th, 31st, 32nd, 33rd, 34th, 35th, 36th, 38th, 39th, 42nd, 43rd, 47th, 49th, 50th, 51st, 52nd, 53rd, 63rd, 64th, 66th, 69th, 70th, 76th, 81st, 83rd, 84th, 85th, 88th, 90th, 97th, 100th, 105th, 106th, 110th, 112th, 118th, 119th, 123rd, 142nd, 145th, 156th, 159th, 173rd, 196th, 198th, 216th, 220th, 229th, 235th, 253rd, 258th, 259th, 266th, 268th, 271st, [278th,] 286th, 329th, 344th, 349th, [and] 355th, and 506th judicial districts;

(2)iithe criminal district attorneys for the counties of Anderson, Austin, Bastrop, Bexar, Bowie, Brazoria, Caldwell, Calhoun, Cass, Collin, Comal, Dallas, Deaf Smith, Denton, Eastland, Galveston, Grayson, Gregg, Harrison, Hays, Hidalgo, Jasper, Jefferson, Kaufman, Lubbock, McLennan, Madison, Navarro, Newton, Panola, Polk, Randall, Rockwall, San Jacinto, Smith, Tarrant, Taylor, Tyler, Upshur, Van Zandt, Victoria, Walker, Waller, Wichita, Wood, and Yoakum; and

(3)iithe county attorneys performing the duties of district attorneys in the counties of Andrews, Callahan, Cameron, Castro, Colorado, Crosby, Ellis, Falls, Fannin, Freestone, Lamar, Lamb, Lampasas, Lee, Limestone, Marion, Milam, Morris, Ochiltree, Orange, Rains, Red River, Robertson, Rusk, Terry, Webb, and Willacy.

SECTIONi19.ii(a)iiSubchapter H, Chapter 51, Government Code, is amended by adding Section 51.707 to read as follows:

Sec.i51.707.iiADDITIONAL FILING FEE FOR CIVIL CASES IN HAYS COUNTY. (a)iiThis section applies only to district courts, probate courts, county courts at law, and justice courts in Hays County.

(b)iiExcept as otherwise provided by this section and in addition to all other fees authorized or required by other law, the clerk of a court shall collect a filing fee of not more than $15 in each civil case filed in the court to be used for the construction, renovation, or improvement of the facilities that house the Hays County civil courts.

(c)iiCourt fees due under this section shall be collected in the same manner as other fees, fines, or costs are collected in the case.

(d)iiThe clerk shall send the fees collected under this section to the county treasurer or to any other official who discharges the duties commonly assigned to the county treasurer at least as frequently as monthly. The treasurer or other official shall deposit the fees in a special account in the county treasury dedicated to the construction, renovation, or improvement of the facilities that house the courts collecting the fee.

(e)iiThis section applies only to fees for a 12-month period beginning July 1, if the commissioners court:

(1)iiadopts a resolution authorizing a fee of not more than $15;

(2)iiadopts a resolution requiring the county to spend one dollar for the construction, renovation, or improvement of the court facilities for each dollar spent from the special account dedicated to that purpose; and

5020 80th Legislature — Regular Session 68th Day


(3)iifiles the resolutions with the county treasurer or with any other official who discharges the duties commonly assigned to the county treasurer not later than June 1 immediately preceding the first 12-month period during which the fees are to be collected.

(f)iiA resolution adopted under Subsection (e) continues from year to year until July 1, 2022, allowing the county to collect fees under the terms of this section until the resolution is rescinded.

(g)iiThe commissioners court may rescind a resolution adopted under Subsection (e) by adopting a resolution rescinding the resolution and submitting the rescission resolution to the county treasurer or to any other official who discharges the duties commonly assigned to the county treasurer not later than June 1 preceding the beginning of the first day of the county fiscal year. The commissioners court may adopt an additional resolution in the manner provided by Subsection (e) after rescinding a previous resolution under that subsection.

(h)iiA fee established under a particular resolution is abolished on the earlier of:

(1)iithe date a resolution adopted under Subsection (e) is rescinded as provided by Subsection (g); or

(2)iiJuly 1, 2022.

(i)iiThe county may make the required expenditure described by Subsection (e)(2) at any time, regardless of when the expenditure from the special account occurs.

(b)iiSection 101.061, Government Code, is amended to read as follows:

Sec.i101.061.iiDISTRICT COURT FEES AND COSTS. The clerk of a district court shall collect fees and costs as follows:

(1)iifiling fee in action with respect to a fraudulent court record or fraudulent lien or claim filed against property (Sec. 12.005, Civil Practice and Remedies Code) .i.i. $15;

(2)iifee for service of notice of action with respect to a fraudulent court record or fraudulent lien or claim filed against property (Sec. 12.005, Civil Practice and Remedies Code) .i.i. not to exceed $20, if notice delivered in person, or the cost of postage, if service is by registered or certified mail;

(3)iicourt cost in certain civil cases to establish and maintain an alternative dispute resolution system, if authorized by the county commissioners court (Sec. 152.004, Civil Practice and Remedies Code) .i.i. not to exceed $10;

(4)iiappellate judicial system filing fees for:

(A)iiFirst or Fourteenth Court of Appeals District (Sec. 22.2021, Government Code) .i.i. not more than $5;

(B)iiSecond Court of Appeals District (Sec. 22.2031, Government Code) .i.i. not more than $5;

(C)iiFourth Court of Appeals District (Sec. 22.2051, Government Code) .i.i. not more than $5;

(D)iiFifth Court of Appeals District (Sec. 22.2061, Government Code) .i.i. not more than $5; and

(E)iiThirteenth Court of Appeals District (Sec. 22.2141, Government Code) .i.i. not more than $5;

(5)iiadditional filing fees:

Saturday, May 26, 2007 SENATE JOURNAL 5021


(A)iifor each suit filed for insurance contingency fund, if authorized by the county commissioners court (Sec. 51.302, Government Code) .i.i. not to exceed $5;

(B)iifor each civil suit filed, for court-related purposes for the support of the judiciary and for civil legal services to an indigent:

(i)iifor family law cases and proceedings as defined by Section 25.0002, Government Code (Sec. 133.151, Local Government Code) .i.i. $45; or

(ii)iifor any case other than a case described by Subparagraph (i) (Sec. 133.151, Local Government Code) .i.i. $50;

(C)iito fund the improvement of Dallas County civil court facilities, if authorized by the county commissioners court (Sec. 51.705, Government Code) .i.i. not more than $15; [and]

(D)iion the filing of any civil action or proceeding requiring a filing fee, including an appeal, and on the filing of any counterclaim, cross-action, intervention, interpleader, or third-party action requiring a filing fee, to fund civil legal services for the indigent:

(i)iifor family law cases and proceedings as defined by Section 25.0002, Government Code (Sec. 133.152, Local Government Code) .i.i. $5; or

(ii)iifor any case other than a case described by Subparagraph (i) (Sec. 133.152, Local Government Code) .i.i. $10; and

(E)iito fund the improvement of Hays County court facilities, if authorized by the county commissioners court (Sec. 51.707, Government Code) .i.i. not more than $15;

(6)iifor filing a suit, including an appeal from an inferior court:

(A)iifor a suit with 10 or fewer plaintiffs (Sec. 51.317, Government Code) .i.i. $50;

(B)iifor a suit with at least 11 but not more than 25 plaintiffs (Sec. 51.317, Government Code) .i.i. $75;

(C)iifor a suit with at least 26 but not more than 100 plaintiffs (Sec. 51.317, Government Code) .i.i. $100;

(D)iifor a suit with at least 101 but not more than 500 plaintiffs (Sec. 51.317, Government Code) .i.i. $125;

(E)iifor a suit with at least 501 but not more than 1,000 plaintiffs (Sec. 51.317, Government Code) .i.i. $150; or

(F)iifor a suit with more than 1,000 plaintiffs (Sec. 51.317, Government Code) .i.i. $200;

(7)iifor filing a cross-action, counterclaim, intervention, contempt action, motion for new trial, or third-party petition (Sec. 51.317, Government Code) .i.i. $15;

(8)iifor issuing a citation or other writ or process not otherwise provided for, including one copy, when requested at the time a suit or action is filed (Sec. 51.317, Government Code) .i.i. $8;

(9)iifor records management and preservation (Sec. 51.317, Government Code) .i.i. $10;

(10)iifor issuing a subpoena, including one copy (Sec. 51.318, Government Code) .i.i. $8;

5022 80th Legislature — Regular Session 68th Day


(11)iifor issuing a citation, commission for deposition, writ of execution, order of sale, writ of execution and order of sale, writ of injunction, writ of garnishment, writ of attachment, or writ of sequestration not provided for in Section 51.317, or any other writ or process not otherwise provided for, including one copy if required by law (Sec. 51.318, Government Code) .i.i. $8;

(12)iifor searching files or records to locate a cause when the docket number is not provided (Sec. 51.318, Government Code) .i.i. $5;

(13)iifor searching files or records to ascertain the existence of an instrument or record in the district clerk's office (Sec. 51.318, Government Code) .i.i. $5;

(14)iifor abstracting a judgment (Sec. 51.318, Government Code) .i.i. $8;

(15)iifor approving a bond (Sec. 51.318, Government Code) .i.i. $4;

(16)iifor a certified copy of a record, judgment, order, pleading, or paper on file or of record in the district clerk's office, including certificate and seal, for each page or part of a page (Sec. 51.318, Government Code) .i.i. $1;

(17)iifor a noncertified copy, for each page or part of a page (Sec. 51.318, Government Code) .i.i. not to exceed $1;

(18)iijury fee (Sec. 51.604, Government Code) .i.i. $30;

(19)iifor filing a report of divorce or annulment (Sec. 194.002, Health and Safety Code) .i.i. $1;

(20)iifor filing a suit in Comal County (Sec. 152.0522, Human Resources Code) .i.i. $4;

(21)iiadditional filing fee for family protection on filing a suit for dissolution of a marriage under Chapter 6, Family Code, if authorized by the county commissioners court (Sec. 51.961, Government Code) .i.i. not to exceed $30;

(22)iifee on filing a suit for dissolution of a marriage for services of child support department in Harris County, if authorized by the county commissioners court (Sec. 152.1074, Human Resources Code) .i.i. not to exceed $12;

(22-a)iia child support service fee in Nueces County if ordered by the commissioners court and assessed by the court (Sec. 152.1844, Human Resources Code) .i.i. not to exceed $5 a month payable annually in advance;

(22-b)iia service fee to be paid by a person ordered by a district court to pay child or spousal support:

(A)iiin Collin County if authorized by the juvenile board (Sec. 152.0492, Human Resources Code) .i.i. not to exceed $2.50 added to first support payment each month;

(B)iiin Johnson County if authorized by the juvenile board (Sec. 152.1322, Human Resources Code) .i.i. $1.00 added to first support payment each month; and

(C)iiin Montague County (Sec. 152.1752, Human Resources Code) .i.i. $1 if fee is ordered to be paid monthly, 50 cents if fee is ordered to be paid semimonthly or weekly;

(22-c)iiattorney's fees as an additional cost in Montague County on a finding of contempt of court for failure to pay child or spousal support if the contempt action is initiated by the probation department (Sec. 152.1752, Human Resources Code) .i.i. $15;

Saturday, May 26, 2007 SENATE JOURNAL 5023


(23)iifee on filing a suit requesting an adoption in Montague County (Sec. 152.1752, Human Resources Code) .i.i. $25;

(24)iicourt cost on citation for contempt of court for failure to comply with child support order in Nueces County, if authorized by the commissioners court (Sec. 152.1844, Human Resources Code) .i.i. not to exceed $10;

(25)iifee on filing a suit for divorce in Orange County (Sec. 152.1873, Human Resources Code) .i.i. not less than $5;

(26)iicourt costs on citation for contempt of court in Orange County for failure to comply with a child support order or order providing for possession of or access to a child (Sec. 152.1873, Human Resources Code) .i.i. amount determined by district clerk;

(27)iifee on filing a suit requesting an adoption in Orange County (Sec. 152.1874, Human Resources Code) .i.i. not less than $25;

(28)iifee on filing a suit requesting an adoption in Wichita County (Sec. 152.2496, Human Resources Code) .i.i. $100;

(29)iiadditional filing fee to fund the courthouse security fund, if authorized by the county commissioners court (Sec. 291.008, Local Government Code) .i.i. not to exceed $5;

(30)iiadditional filing fee for filing documents not subject to certain filing fees to fund the courthouse security fund, if authorized by the county commissioners court (Sec. 291.008, Local Government Code) .i.i. $1;

(31)iiadditional filing fee to fund the courthouse security fund in Webb County, if authorized by the county commissioners court (Sec. 291.009, Local Government Code) .i.i. not to exceed $20;

(32)iicourt cost in civil cases other than suits for delinquent taxes to fund the county law library fund, if authorized by the county commissioners court (Sec. 323.023, Local Government Code) .i.i. not to exceed $35;

(33)iiwhen administering a case for the Rockwall County Court at Law (Sec. 25.2012, Government Code) .i.i. civil fees and court costs as if the case had been filed in district court;

(34)iiat a hearing held by an associate judge in Dallas County, a court cost to preserve the record, in the absence of a court reporter, by other means (Sec. 54.509, Government Code) .i.i. as assessed by the referring court or associate judge;

(35)iiat a hearing held by an associate judge in Duval County, a court cost to preserve the record (Sec. 54.1151, Government Code, as added by Chapter 1150, Acts of the 78th Legislature, Regular Session, 2003) .i.i. as imposed by the referring court or associate judge;

(36)iicourt fees and costs, if ordered by the court, for a suit filed by an inmate in which an affidavit or unsworn declaration of inability to pay costs is filed by the inmate (Sec. 14.006, Civil Practice and Remedies Code) .i.i. the lesser of:

(A)ii20 percent of the preceding six months' deposits to the inmate's trust account administered by the Texas Department of Criminal Justice under Section 501.014, Government Code; or

(B)iithe total amount of court fees and costs;

5024 80th Legislature — Regular Session 68th Day


(37)iimonthly payment for remaining court fees and costs after the initial payment for a suit in which an affidavit or unsworn declaration of inability to pay costs is filed by the inmate (Sec. 14.006, Civil Practice and Remedies Code) .i.i. the lesser of:

(A)ii10 percent of that month's deposit to the inmate's trust account administered by the Texas Department of Criminal Justice under Section 501.014, Government Code; or

(B)iithe total amount of court fees and costs that remain unpaid;

(38)iithe following costs not otherwise charged to the inmate under Section 14.006, Civil Practice and Remedies Code, if the inmate has previously filed an action dismissed as malicious or frivolous (Sec. 14.007, Civil Practice and Remedies Code):

(A)iiexpenses of service of process;

(B)iipostage; and

(C)iitransportation, housing, or medical care incurred in connection with the appearance of the inmate in the court for any proceeding;

(39)iifee for performing a service:

(A)iirelated to the matter of the estate of a deceased person (Sec. 51.319, Government Code) .i.i. the same fee allowed the county clerk for those services;

(B)iirelated to the matter of a minor (Sec. 51.319, Government Code) .i.i. the same fee allowed the county clerk for the service;

(C)iiof serving process by certified or registered mail (Sec. 51.319, Government Code) .i.i. the same fee a sheriff or constable is authorized to charge for the service under Section 118.131, Local Government Code; and

(D)iiprescribed or authorized by law but for which no fee is set (Sec. 51.319, Government Code) .i.i. a reasonable fee;

(40)iicourt costs, which may include expert witness fees in Travis County in an action in which the plaintiff prevails against an insurer for economic damages sustained by the plaintiff as a result of unfair discrimination (Sec. 544.054, Insurance Code) .i.i. court costs and reasonable and necessary expert witness fees;

(41)iisecurity deposit on filing, by any person other than the personal representative of an estate, an application, complaint, or opposition in relation to the estate, if required by the clerk (Sec. 12, Texas Probate Code) .i.i. probable cost of the proceeding;

(42)iisecurity deposit on filing, by any person other than the guardian, attorney ad litem, or guardian ad litem, an application, complaint, or opposition in relation to a guardianship matter, if required by the clerk (Sec. 622, Texas Probate Code) .i.i. probable cost of the guardianship proceeding; and

(43)iifee for filing an additional petition for review of an appraisal review board order relating to certain regulated property running through or operating in more than one county after the first petition for review relating to the same property is filed for a tax year (Sec. 42.221, Tax Code) .i.i. $5.

(c)iiSection 101.081, Government Code, is amended to read as follows:

Sec.i101.081.iiSTATUTORY COUNTY COURT FEES AND COSTS. The clerk of a statutory county court shall collect fees and costs as follows:

Saturday, May 26, 2007 SENATE JOURNAL 5025


(1)iicourt cost in certain civil cases to establish and maintain an alternative dispute resolution system, if authorized by the county commissioners court (Sec. 152.004, Civil Practice and Remedies Code) .i.i. not to exceed $10;

(2)iiappellate judicial system filing fees:

(A)iiFirst or Fourteenth Court of Appeals District (Sec. 22.2021, Government Code) .i.i. not more than $5;

(B)iiSecond Court of Appeals District (Sec. 22.2031, Government Code) .i.i. not more than $5;

(C)iiFourth Court of Appeals District (Sec. 22.2051, Government Code) .i.i. not more than $5;

(D)iiFifth Court of Appeals District (Sec. 22.2061, Government Code) .i.i. not more than $5; and

(E)iiThirteenth Court of Appeals District (Sec. 22.2141, Government Code) .i.i. not more than $5;

(3)iian official court reporter fee, County Court at Law No. 2 of Bexar County (Sec. 25.0172, Government Code) .i.i. $3;

(4)iia court reporter fee when testimony is taken in a county court at law in McLennan County (Sec. 25.1572, Government Code) .i.i. $3;

(5)iia stenographer fee, if a record or part of a record is made:

(A)iiin a county court at law in Hidalgo County (Sec. 25.1102, Government Code) .i.i. $20; and

(B)iiin a county court at law in Nolan County (Sec. 25.1792, Government Code) .i.i. $25;

(6)iijury fee (Sec. 51.604, Government Code) .i.i. $22;

(7)iian additional filing fee:

(A)iifor each civil case filed to be used for court-related purposes for the support of the judiciary, if authorized by the county commissioners court (Sec. 51.702, Government Code) .i.i. $40;

(B)iito fund the improvement of Dallas County civil court facilities, if authorized by the county commissioners court (Sec. 51.705, Government Code) .i.i. not more than $15; [and]

(C)iifor filing any civil action or proceeding requiring a filing fee, including an appeal, and on the filing of any counterclaim, cross-action, intervention, interpleader, or third-party action requiring a filing fee, to fund civil legal services for the indigent (Sec. 133.153, Local Government Code) .i.i. $5; and

(D)iito fund the improvement of Hays County court facilities, if authorized by the county commissioners court (Sec. 51.707, Government Code) .i.i.i not more than $15;

(8)iifor filing an application for registration of death (Sec. 193.007, Health and Safety Code) .i.i. $1;

(9)iifee for judge's services on an application for court-ordered mental health services (Sec. 574.031, Health and Safety Code) .i.i. not to exceed $50;

(10)iifee for prosecutor's services on an application for court-ordered mental health services (Sec. 574.031, Health and Safety Code) .i.i. not to exceed $50;

(11)iifor filing a suit in Comal County (Sec. 152.0522, Human Resources Code) .i.i. $4;

5026 80th Legislature — Regular Session 68th Day


(12)iiadditional filing fee to fund contingency fund for liability insurance, if authorized by the county commissioners court (Sec. 82.003, Local Government Code) .i.i. not to exceed $5;

(13)iicivil court actions (Sec. 118.052, Local Government Code):

(A)iifiling of original action (Secs. 118.052 and 118.053, Local Government Code):

(i)iigarnishment after judgment (Sec. 118.052, Local Government Code) .i.i. $15; and

(ii)iiall others (Sec. 118.052, Local Government Code) .i.i. $40;

(B)iifiling of action other than original (Secs. 118.052 and 118.054, Local Government Code) .i.i. $30; and

(C)iiservices rendered after judgment in original action (Secs. 118.052 and 118.0545, Local Government Code):

(i)iiabstract of judgment (Sec. 118.052, Local Government Code) .i.i. $5; and

(ii)iiexecution, order of sale, writ, or other process (Sec. 118.052, Local Government Code) .i.i. $5;

(14)iiprobate court actions (Sec. 118.052, Local Government Code):

(A)iiprobate original action (Secs. 118.052 and 118.055, Local Government Code):

(i)iiprobate of a will with independent executor, administration with will attached, administration of an estate, guardianship or receivership of an estate, or muniment of title (Sec. 118.052, Local Government Code) .i.i. $40;

(ii)iicommunity survivors (Sec. 118.052, Local Government Code) .i.i. $40;

(iii)iismall estates (Sec. 118.052, Local Government Code) .i.i. $40;

(iv)iideclarations of heirship (Sec. 118.052, Local Government Code) .i.i. $40;

(v)iimental health or chemical dependency services (Sec. 118.052, Local Government Code) .i.i. $40; and

(vi)iiadditional, special fee (Secs. 118.052 and 118.064, Local Government Code) .i.i. $5;

(B)iiservices in pending probate action (Secs. 118.052 and 118.056, Local Government Code):

(i)iifiling an inventory and appraisement after the 120th day after the date of the initial filing of the action (Sec. 118.052, Local Government Code) .i.i. $25;

(ii)iiapproving and recording bond (Sec. 118.052, Local Government Code) .i.i. $3;

(iii)iiadministering oath (Sec. 118.052, Local Government Code) .i.i. $2;

(iv)iifiling annual or final account of estate (Sec. 118.052, Local Government Code) .i.i. $25;

(v)iifiling application for sale of real or personal property (Sec. 118.052, Local Government Code) .i.i. $25;

Saturday, May 26, 2007 SENATE JOURNAL 5027


(vi)iifiling annual or final report of guardian of a person (Sec. 118.052, Local Government Code) .i.i. $10; and

(vii)iifiling a document not listed under this paragraph after the filing of an order approving the inventory and appraisement or after the 120th day after the date of the initial filing of the action, whichever occurs first (Secs. 118.052 and 191.007, Local Government Code), if more than 25 pages .i.i. $25;

(C)iiadverse probate action (Secs. 118.052 and 118.057, Local Government Code) .i.i. $40; and

(D)iiclaim against estate (Secs. 118.052 and 118.058, Local Government Code) .i.i. $2;

(15)iiother fees (Sec. 118.052, Local Government Code):

(A)iiissuing document (Secs. 118.052 and 118.059, Local Government Code):

(i)iioriginal document and one copy (Sec. 118.052, Local Government Code) .i.i. $4; and

(ii)iieach additional set of an original and one copy (Sec. 118.052, Local Government Code) .i.i. $4;

(B)iicertified papers (Secs. 118.052 and 118.060, Local Government Code):

(i)iifor the clerk's certificate (Sec. 118.052, Local Government Code) .i.i. $5; and

(ii)iia fee per page or part of a page (Sec. 118.052, Local Government Code) .i.i. $1;

(C)iinoncertified papers, for each page or part of a page (Secs. 118.052 and 118.0605, Local Government Code) .i.i. $1;

(D)iiletters testamentary, letter of guardianship, letter of administration, or abstract of judgment (Secs. 118.052 and 118.061, Local Government Code) .i.i. $2;

(E)iisafekeeping of wills (Secs. 118.052 and 118.062, Local Government Code) .i.i. $5;

(F)iimail service of process (Secs. 118.052 and 118.063, Local Government Code) .i.i. same as sheriff; and

(G)iirecords management and preservation fee (Secs. 118.052, 118.0546, and 118.0645, Local Government Code) .i.i. $5;

(16)iiadditional filing fee to fund the courthouse security fund, if authorized by the county commissioners court (Sec. 291.008, Local Government Code) .i.i. not to exceed $5;

(17)iiadditional filing fee for filing documents not subject to certain filing fees to fund the courthouse security fund, if authorized by the county commissioners court (Sec. 291.008, Local Government Code) .i.i. $1;

(18)iiadditional filing fee to fund the courthouse security fund in Webb County, if authorized by the county commissioners court (Sec. 291.009, Local Government Code) .i.i. not to exceed $20;

(19)iicourt cost in civil cases other than suits for delinquent taxes to fund the county law library fund, if authorized by the county commissioners court (Sec. 323.023, Local Government Code) .i.i. not to exceed $35;

5028 80th Legislature — Regular Session 68th Day


(20)iifee for deposit of a will with the county clerk during testator's lifetime (Sec. 71, Texas Probate Code) .i.i. $3;

(21)iicourt cost for each special commissioner in an eminent domain proceeding (Sec. 21.047, Property Code) .i.i. as taxed by the court, $10 or more;

(22)iifee for county attorney in a suit regarding a railroad company's failure to keep roadbed and right-of-way in proper condition (Art. 6327, Vernon's Texas Civil Statutes) .i.i. $10;

(23)iicourt fees and costs, if ordered by the court, for a suit filed by an inmate in which an affidavit or unsworn declaration of inability to pay costs is filed by the inmate (Sec. 14.006, Civil Practice and Remedies Code) .i.i. the lesser of:

(A)ii20 percent of the preceding six months' deposits to the inmate's trust account administered by the Texas Department of Criminal Justice under Section 501.014, Government Code; or

(B)iithe total amount of court fees and costs;

(24)iimonthly payment for remaining court fees and costs after the initial payment for a suit in which an affidavit or unsworn declaration of inability to pay costs is filed by the inmate (Sec. 14.006, Civil Practice and Remedies Code) .i.i. the lesser of:

(A)ii10 percent of that month's deposit to the inmate's trust account administered by the Texas Department of Criminal Justice under Section 501.014, Government Code; or

(B)iithe total amount of court fees and costs that remain unpaid;

(25)iithe following costs not otherwise charged to the inmate under Section 14.006, Civil Practice and Remedies Code, if the inmate has previously filed an action dismissed as malicious or frivolous (Sec. 14.007, Civil Practice and Remedies Code):

(A)iiexpenses of service of process;

(B)iipostage; and

(C)iitransportation, housing, or medical care incurred in connection with the appearance of the inmate in the court for any proceeding;

(26)iithe official court reporter's fee taxed as costs in civil actions in a statutory county court:

(A)iiin Bexar County Courts at Law:

(i)iiNos. 3, 4, 5, 6, 7, 8, 9, 10, 11, and 12 (Sec. 25.0172, Government Code) .i.i. taxed in the same manner as the fee is taxed in district court; and

(ii)iiNo. 2 (Sec. 25.0172, Government Code) .i.i. $3;

(B)iiin Galveston County (Sec. 25.0862, Government Code) .i.i. taxed in the same manner as the fee is taxed in civil cases in the district courts; and

(C)iiin Parker County (Sec. 25.1862, Government Code) .i.i. taxed in the same manner as the fee is taxed in civil cases in the district courts;

(27)iia stenographer's fee as costs in each civil, criminal, and probate case in which a record is made by the official court reporter in a statutory county court in Nolan County (Sec. 25.1792, Government Code) .i.i. $25;

(28)iiin Brazoria County, in matters of concurrent jurisdiction with the district court, fees (Sec. 25.0222, Government Code) .i.i. as prescribed by law for district judges according to the nature of the matter;

Saturday, May 26, 2007 SENATE JOURNAL 5029


(29)iiin Nueces County, in matters of concurrent jurisdiction with the district court, with certain exceptions, fees (Sec. 25.1802, Government Code) .i.i. equal to those in district court cases;

(30)iisecurity deposit on filing, by any person other than the personal representative of an estate, an application, complaint, or opposition in relation to the estate, if required by the clerk (Sec. 12, Texas Probate Code) .i.i. probable cost of the proceeding;

(31)iisecurity deposit on filing, by any person other than the guardian, attorney ad litem, or guardian ad litem, an application, complaint, or opposition in relation to a guardianship matter, if required by the clerk (Sec. 622, Texas Probate Code) .i.i. probable cost of the guardianship proceeding;

(32)iifor a hearing or proceeding under the Texas Mental Health Code (Subtitle C, Title 7, Health and Safety Code) as costs (Secs. 571.017 and 571.018, Health and Safety Code) .i.i. reasonable compensation to the following persons appointed under the Texas Mental Health Code:

(A)iiattorneys;

(B)iiphysicians;

(C)iilanguage interpreters;

(D)iisign interpreters; and

(E)iimasters;

(33)iifor a hearing or proceeding under the Texas Mental Health Code (Subtitle C, Title 7, Health and Safety Code) as costs (Sec. 571.018, Health and Safety Code):

(A)iiattorney's fees;

(B)iiphysician examination fees;

(C)iiexpense of transportation to a mental health facility or to a federal agency not to exceed $50 if transporting within the same county and not to exceed the reasonable cost of transportation if transporting between counties;

(D)iicosts and salary supplements authorized under Section 574.031, Health and Safety Code; and

(E)iiprosecutors' fees authorized under Section 574.031, Health and Safety Code;

(34)iiexpenses of transporting certain patients from the county of treatment to a hearing in the county in which the proceedings originated (Sec. 574.008, Health and Safety Code) .i.i. actual expenses unless certain arrangements are made to hold the hearing in the county in which the patient is receiving services;

(35)iiexpenses for expert witness testimony for an indigent patient (Sec. 574.010, Health and Safety Code) .i.i. if authorized by the court as reimbursement to the attorney ad litem, court-approved expenses;

(36)iifee for judge's services for holding a hearing on an application for court-ordered mental health services (Sec. 574.031, Health and Safety Code) .i.i. as assessed by the judge, not to exceed $50;

(37)iiexpenses to reimburse judge for holding a hearing in a hospital or location other than the county courthouse (Sec. 574.031, Health and Safety Code) .i.i. reasonable and necessary expenses as certified;

5030 80th Legislature — Regular Session 68th Day


(38)iifee for services of a prosecuting attorney, including costs incurred for preparation of documents related to a hearing on an application for court-ordered mental health services (Sec. 574.031, Health and Safety Code) .i.i. as assessed by the judge, not to exceed $50; and

(39)iia fee not otherwise listed in this section that is required to be collected under Section 25.0008, Government Code (Sec. 25.0008, Government Code), in a county other than Brazos, Cameron, Ellis, Guadalupe, Harris, Henderson, Liberty, Moore, Nolan, Panola, Parker, Starr, Victoria, and Williamson .i.i. as prescribed by law relating to county judges' fees.

(d)iiSection 101.101, Government Code, is amended to read as follows:

Sec.i101.101.iiSTATUTORY PROBATE COURT FEES AND COSTS. The clerk of a statutory probate court shall collect fees and costs as follows:

(1)iicourt cost in certain civil cases to establish and maintain an alternative dispute resolution system, if authorized by the county commissioners court (Sec. 152.004, Civil Practice and Remedies Code) .i.i. not to exceed $10;

(2)iiappellate judicial system filing fees:

(A)iiFirst or Fourteenth Court of Appeals District (Sec. 22.2021, Government Code) .i.i. not more than $5;

(B)iiSecond Court of Appeals District (Sec. 22.2031, Government Code) .i.i. not more than $5;

(C)iiFourth Court of Appeals District (Sec. 22.2051, Government Code) .i.i. not more than $5;

(D)iiFifth Court of Appeals District (Sec. 22.2061, Government Code) .i.i. not more than $5; and

(E)iiThirteenth Court of Appeals District (Sec. 22.2141, Government Code) .i.i. not more than $5;

(3)iiadditional filing fees as follows:

(A)iifor certain cases to be used for court-related purposes for support of the judiciary, if authorized by the county commissioners court (Sec. 51.704, Government Code) .i.i. $40;

(B)iito fund the improvement of Dallas County civil court facilities, if authorized by the county commissioners court (Sec. 51.705, Government Code) .i.i. not more than $15; [and]

(C)iifor filing any civil action or proceeding requiring a filing fee, including an appeal, and on the filing of any counterclaim, cross-action, intervention, interpleader, or third-party action requiring a filing fee to fund civil legal services for the indigent (Sec. 133.153, Local Government Code) .i.i. $5; and

(D)iito fund the improvement of Hays County court facilities, if authorized by the county commissioners court (Sec. 51.707, Government Code) .i.i. not more than $15;

(4)iifor filing an application for registration of death (Sec. 193.007, Health and Safety Code) .i.i. $1;

(5)iifee for judge's services on an application for court-ordered mental health services (Sec. 574.031, Health and Safety Code) .i.i. not to exceed $50;

(6)iifee for prosecutor's services on an application for court-ordered mental health services (Sec. 574.031, Health and Safety Code) .i.i. not to exceed $50;

Saturday, May 26, 2007 SENATE JOURNAL 5031


(7)iiadditional filing fee to fund contingency fund for liability insurance, if authorized by the county commissioners court (Sec. 82.003, Local Government Code) .i.i. not to exceed $5;

(8)iiprobate court actions (Sec. 118.052, Local Government Code):

(A)iiprobate original action (Secs. 118.052 and 118.055, Local Government Code):

(i)iiprobate of a will with independent executor, administration with will attached, administration of an estate, guardianship or receivership of an estate, or muniment of title (Sec. 118.052, Local Government Code) .i.i. $40;

(ii)iicommunity survivors (Sec. 118.052, Local Government Code) .i.i. $40;

(iii)iismall estates (Sec. 118.052, Local Government Code) .i.i. $40;

(iv)iideclarations of heirship (Sec. 118.052, Local Government Code) .i.i. $40;

(v)iimental health or chemical dependency services (Sec. 118.052, Local Government Code) .i.i. $40; and

(vi)iiadditional, special fee (Secs. 118.052 and 118.064, Local Government Code) .i.i. $5;

(B)iiservices in pending probate action (Secs. 118.052 and 118.056, Local Government Code):

(i)iifiling an inventory and appraisement after the 120th day after the date of the initial filing of the action (Sec. 118.052, Local Government Code) .i.i. $25;

(ii)iiapproving and recording bond (Sec. 118.052, Local Government Code) .i.i. $3;

(iii)iiadministering oath (Sec. 118.052, Local Government Code) .i.i. $2;

(iv)iifiling annual or final account of estate (Sec. 118.052, Local Government Code) .i.i. $25;

(v)iifiling application for sale of real or personal property (Sec. 118.052, Local Government Code) .i.i. $25;

(vi)iifiling annual or final report of guardian of a person (Sec. 118.052, Local Government Code) .i.i. $10; and

(vii)iifiling a document not listed under this paragraph after the filing of an order approving the inventory and appraisement or after the 120th day after the date of the initial filing of the action, whichever occurs first (Secs. 118.052 and 191.007, Local Government Code), if more than 25 pages .i.i. $25;

(C)iiadverse probate action (Secs. 118.052 and 118.057, Local Government Code) .i.i. $40; and

(D)iiclaim against estate (Secs. 118.052 and 118.058, Local Government Code) .i.i. $2;

(9)iiother fees (Sec. 118.052, Local Government Code):

(A)iiissuing document (Secs. 118.052 and 118.059, Local Government Code):

(i)iioriginal document and one copy (Sec. 118.052, Local Government Code) .i.i. $4; and

5032 80th Legislature — Regular Session 68th Day


(ii)iieach additional set of an original and one copy (Sec. 118.052, Local Government Code) .i.i. $4;

(B)iicertified papers (Secs. 118.052 and 118.060, Local Government Code):

(i)iifor the clerk's certificate (Sec. 118.052, Local Government Code) .i.i. $5; and

(ii)iia fee per page or part of a page (Sec. 118.052, Local Government Code) .i.i. $1;

(C)iinoncertified papers, for each page or part of a page (Secs. 118.052 and 118.0605, Local Government Code) .i.i. $1;

(D)iiletters testamentary, letter of guardianship, letter of administration, or abstract of judgment (Secs. 118.052 and 118.061, Local Government Code) .i.i. $2;

(E)iisafekeeping of wills (Secs. 118.052 and 118.062, Local Government Code) .i.i. $5;

(F)iimail service of process (Secs. 118.052 and 118.063, Local Government Code) .i.i. same as sheriff; and

(G)iirecords management and preservation fee (Secs. 118.052 and 118.0645, Local Government Code) .i.i. $5;

(10)iifee for deposit of a will with the county clerk during testator's lifetime (Sec. 71, Texas Probate Code) .i.i. $3;

(11)iicourt costs for each special commissioner in an eminent domain proceeding (Sec. 21.047, Property Code) .i.i. as taxed by the court, $10 or more;

(12)iijury fee for civil case (Sec. 51.604, Government Code) .i.i. $22;

(13)iicourt cost in civil cases other than suits for delinquent taxes to fund the county law library fund, if authorized by the county commissioners court (Sec. 323.023, Local Government Code) .i.i. not to exceed $35;

(14)iithe expense of preserving the record as a court cost, if imposed on a party by the referring court or associate judge (Sec. 54.612, Government Code) .i.i. actual cost;

(15)iisecurity deposit on filing, by any person other than the personal representative of an estate, an application, complaint, or opposition in relation to the estate, if required by the clerk (Sec. 12, Texas Probate Code) .i.i. probable cost of the proceeding;

(16)iisecurity deposit on filing, by any person other than the guardian, attorney ad litem, or guardian ad litem, an application, complaint, or opposition in relation to a guardianship matter, if required by the clerk (Sec. 622, Texas Probate Code) .i.i. probable cost of the guardianship proceeding;

(17)iifor a hearing or proceeding under the Texas Mental Health Code (Subtitle C, Title 7, Health and Safety Code) as costs (Secs. 571.017 and 571.018, Health and Safety Code) .i.i. reasonable compensation to the following persons appointed under the Texas Mental Health Code:

(A)iiattorneys;

(B)iiphysicians;

(C)iilanguage interpreters;

(D)iisign interpreters; and

(E)iimasters;

Saturday, May 26, 2007 SENATE JOURNAL 5033


(18)iifor a hearing or proceeding under the Texas Mental Health Code (Subtitle C, Title 7, Health and Safety Code) as costs (Sec. 571.018, Health and Safety Code):

(A)iiattorney's fees;

(B)iiphysician examination fees;

(C)iiexpense of transportation to a mental health facility or to a federal agency not to exceed $50 if transporting within the same county and not to exceed the reasonable cost of transportation if transporting between counties;

(D)iicosts and salary supplements authorized under Section 574.031, Health and Safety Code; and

(E)iiprosecutors' fees authorized under Section 574.031, Health and Safety Code;

(19)iiexpenses of transporting certain patients from the county of treatment to a hearing in the county in which the proceedings originated (Sec. 574.008, Health and Safety Code) .i.i. actual expenses unless certain arrangements are made to hold the hearing in the county in which the patient is receiving services;

(20)iiexpenses for expert witness testimony for an indigent patient (Sec. 574.010, Health and Safety Code) .i.i. if authorized by the court as reimbursement to the attorney ad litem, court-approved expenses;

(21)iifee for judge's services for holding a hearing on an application for court-ordered mental health services (Sec. 574.031, Health and Safety Code) .i.i. as assessed by the judge, not to exceed $50;

(22)iiexpenses to reimburse judge for holding a hearing in a hospital or location other than the county courthouse (Sec. 574.031, Health and Safety Code) .i.i. reasonable and necessary expenses as certified;

(23)iifee for services of a prosecuting attorney, including costs incurred for preparation of documents related to a hearing on an application for court-ordered mental health services (Sec. 574.031, Health and Safety Code) .i.i. as assessed by the judge, not to exceed $50; and

(24)iia fee not otherwise listed in this section that is required to be collected under Section 25.0029, Government Code (Sec. 25.0029, Government Code) .i.i. as prescribed by law relating to county judges' fees.

(e)iiSubsection (a), Section 101.141, Government Code, is amended to read as follows:

(a)iiA clerk of a justice court shall collect fees and costs as follows:

(1)iiadditional court cost in certain civil cases to establish and maintain an alternative dispute resolution system, if authorized by the commissioners court of a county with a population of at least 2.5 million (Sec. 152.005, Civil Practice and Remedies Code) .i.i. not to exceed $3;

(2)iiadditional filing fees:

(A)iito fund Dallas County civil court facilities (Sec. 51.705, Government Code) .i.i. not more than $15; [and]

(B)iifor filing any civil action or proceeding requiring a filing fee, including an appeal, and on the filing of any counterclaim, cross-action, intervention, interpleader, or third-party action requiring a filing fee, to fund civil legal services for the indigent (Sec. 133.153, Local Government Code) .i.i. $2; and

5034 80th Legislature — Regular Session 68th Day


(C)iito fund the improvement of Hays County court facilities, if authorized by the county commissioners court (Sec. 51.707, Government Code) .i.i. not more than $15;

(3)iifor filing a suit in Comal County (Sec. 152.0522, Human Resources Code) .i.i. $1.50;

(4)iifee for hearing on probable cause for removal of a vehicle and placement in a storage facility if assessed by the court (Sec. 685.008, Transportation Code) .i.i. $20;

(5)iicourt fees and costs, if ordered by the court, for a suit filed by an inmate in which an affidavit or unsworn declaration of inability to pay costs is filed by the inmate (Sec. 14.006, Civil Practice and Remedies Code) .i.i. the lesser of:

(A)ii20 percent of the preceding six months' deposits to the inmate's trust account administered by the Texas Department of Criminal Justice under Section 501.014, Government Code; or

(B)iithe total amount of court fees and costs;

(6)iimonthly payment for remaining court fees and costs after the initial payment for a suit in which an affidavit or unsworn declaration of inability to pay costs is filed by the inmate (Sec. 14.006, Civil Practice and Remedies Code) .i.i. the lesser of:

(A)ii10 percent of that month's deposit to the inmate's trust account administered by the Texas Department of Criminal Justice under Section 501.014, Government Code; or

(B)iithe total amount of court fees and costs that remain unpaid;

(7)iithe following costs not otherwise charged to the inmate under Section 14.006, Civil Practice and Remedies Code, if the inmate has previously filed an action dismissed as malicious or frivolous (Sec. 14.007, Civil Practice and Remedies Code):

(A)iiexpenses of service of process;

(B)iipostage; and

(C)iitransportation, housing, or medical care incurred in connection with the appearance of the inmate in the court for any proceeding; and

(8)iithe cost of a special program that a court may order a child to attend after a finding that the child committed an offense, if ordered by the court (Art. 45.057, Code of Criminal Procedure) .i.i. costs of the program not to exceed $100.

SECTIONi20.ii(a)iiSection 53.001, Government Code, is amended by adding Subsection (j) to read as follows:

(j)iiThe judge of the 115th District Court shall appoint a bailiff to serve the court only in Upshur County.

(b)iiSection 53.004, Government Code, is amended by adding Subsection (g) to read as follows:

(g)iiA bailiff appointed by the judge of the 115th District Court to serve the court in Upshur County must be:

(1)iia resident of that county; and

(2)iiat least 18 years of age.

(c)iiSubsections (a) and (b), Section 53.007, Government Code, are amended to read as follows:

(a)iiThis section applies to:

Saturday, May 26, 2007 SENATE JOURNAL 5035


(1)iithe 22nd, 34th, 70th, 71st, 86th, 97th, 142nd, 161st, 238th, 318th, 341st, 355th, and 385th district courts;

(2)iithe County Court of Harrison County;

(3)iithe criminal district courts of Tarrant County;

(4)iithe district courts in Taylor County;

(5)iithe courts described in Section 53.002(c), (d), (e), or (f);

(6)iithe county courts at law of Taylor County; [and]

(7)iithe district courts in Tarrant County that give preference to criminal cases; and

(8)iithe 115th District Court in Upshur County.

(b)iiOn the request of the judge of a court to which this section applies other than the 115th District Court, the sheriff of each county in which the court sits shall deputize the bailiff or grand jury bailiff appointed under this subchapter of that court, in addition to other deputies authorized by law. On the request of the judge of the 115th District Court, the sheriff of Upshur County shall deputize the bailiff appointed by that judge under Section 53.001(j), in addition to other deputies authorized by law.

SECTIONi21.iiSection 152.0721, Human Resources Code, is amended by adding Subsection (f) to read as follows:

(f)iiThe Duval County Juvenile Board and the juvenile boards of one or more counties that are adjacent to or in close proximity to Duval County may agree to operate together with respect to all matters, or with respect to certain matters specified by the juvenile boards. Juvenile boards operating together may appoint one fiscal officer to receive and disburse funds for the boards.

SECTIONi22.ii(a)iiSubchapter D, Chapter 152, Human Resources Code, is amended by adding Section 152.1301 to read as follows:

Sec.i152.1301.iiJIM HOGG COUNTY. (a)iiThe Jim Hogg County Juvenile Board is composed of the county judge, the district judge in Jim Hogg County, and a citizen of Jim Hogg County appointed by the county judge and the district judge. The citizen member of the board serves the same term of office as the district judge in Jim Hogg County.

(b)iiThe district judge is the chairman of the board and its chief administrative officer.

(c)iiThe commissioners court may pay the juvenile board members an annual salary set by the commissioners court at not less than $1,200 or more than $3,600 for the added duties imposed on the members. The salary shall be paid in equal monthly installments from the general fund of the county.

(d)iiThe juvenile board shall appoint not more than five persons to serve on an advisory council.

(e)iiThe Jim Hogg County Juvenile Board and the juvenile boards of one or more counties that are adjacent to or in close proximity to Jim Hogg County may agree to operate together with respect to all matters, or with respect to certain matters specified by the juvenile boards. Juvenile boards operating together may appoint one fiscal officer to receive and disburse funds for the boards.

(f)iiSections 152.0002, 152.0004, 152.0005, 152.0006, 152.0007, and 152.0008 do not apply to the juvenile board.

5036 80th Legislature — Regular Session 68th Day


(b)iiThe Jim Hogg County Juvenile Board is created on the effective date of this Act.

SECTIONi23.iiSection 152.2201, Human Resources Code, is amended by amending Subsection (a) and adding Subsection (f) to read as follows:

(a)iiThe Starr County Juvenile Board is composed of the county judge, the judge of the county court at law in Starr County, and the district judges in Starr County.

(f)iiThe Starr County Juvenile Board and the juvenile boards of one or more counties that are adjacent to or in close proximity to Starr County may agree to operate together with respect to all matters, or with respect to certain matters specified by the juvenile boards. Juvenile boards operating together may appoint one fiscal officer to receive and disburse funds for the boards.

SECTIONi24.iiSection 54.602, Government Code, is repealed.

SECTIONi25.iiExcept as otherwise provided by this Act, this Act takes effect September 1, 2007.

The Conference Committee Report on SBi1951 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 530

Senator Nelson submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi530 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

NELSON EISSLER
JANEK DELISI
SHAPIRO HOCHBERG
WATSON PATRICK
VANiDEiPUTTE ZEDLER
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to physical activity requirements and physical fitness assessment for certain public school students.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubsections (l) and (l-1), Section 28.002, Education Code, are amended to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 5037


(l)iiA school district shall [The State Board of Education, after consulting with educators, parents, and medical professionals, by rule may] require a student enrolled in kindergarten or a grade level below grade six [nine] to participate in moderate or vigorous daily physical activity for at least 30 minutes throughout the school year as part of the [a school] district's physical education curriculum or through structured activity during a school campus's daily recess[, except that the board may not require more than 30 minutes of daily physical activity]. A school district shall require students enrolled in grade levels six, seven, and eight to participate in moderate or vigorous daily physical activity for at least 30 minutes for at least four semesters during those grade levels as part of the district's physical education curriculum. If a school district determines, for any particular grade level below grade six, that requiring moderate or vigorous daily physical activity is impractical due to scheduling concerns or other factors, the district may as an alternative require a student in that grade level to participate in moderate or vigorous physical activity for at least 135 minutes during each school week [the board adopts rules under this subsection, the board must ensure by rule that students enrolled in middle and junior high school settings are allowed to meet the physical activity requirement by participating in physical activity twice each week throughout the school year or the option to schedule at least two semesters overall]. Additionally, a school district may as an alternative require a student enrolled in a grade level for which the district uses block scheduling to participate in moderate or vigorous physical activity for at least 225 minutes during each period of two school weeks. A school district [If the board adopts rules under this subsection, the board] must provide for an exemption for:

(1)iiany student who is unable to participate in the required [daily] physical activity because of illness or disability; and

(2)iia middle school or junior high school student who participates in an extracurricular activity with a moderate or vigorous physical activity component that is considered a structured activity under rules adopted by the commissioner [State Board of Education].

(l-1)iiIn adopting rules relating to an activity described by Subsection (l)(2), the commissioner [State Board of Education] may permit an exemption for a student who participates in a school-related activity or an activity sponsored by a private league or club only if the student provides proof of participation in the activity.

SECTIONi2.iiSection 28.004, Education Code, is amended by amending Subsection (k) and adding Subsection (l) to read as follows:

(k)iiA school district shall publish in the student handbook and post on the district's Internet website, if the district has an Internet website:

(1)iia statement of the policies adopted to ensure that elementary school, middle school, and junior high school students engage in at least the amount and level [30 minutes per school day or 135 minutes per school week] of physical activity required by Section 28.002(l); [and]

(2)iia statement of:

(A)iithe number of times during the preceding year the district's school health advisory council has met;

5038 80th Legislature — Regular Session 68th Day


(B)iiwhether the district has adopted and enforces policies to ensure that district campuses comply with agency vending machine and food service guidelines for restricting student access to vending machines; and

(C)iiwhether the district has adopted and enforces policies and procedures that prescribe penalties for the use of tobacco products by students and others on school campuses or at school-sponsored or school-related activities; and

(3)iia statement providing notice to parents that they can request in writing their child's physical fitness assessment results at the end of the school year.

(l)iiThe local school health advisory council shall consider and make policy recommendations to the district concerning the importance of daily recess for elementary school students. The council must consider research regarding unstructured and undirected play, academic and social development, and the health benefits of daily recess in making the recommendations. The council shall ensure that local community values are reflected in any policy recommendation made to the district under this subsection.

SECTIONi3.iiChapter 38, Education Code, is amended by adding Subchapter C to read as follows:

SUBCHAPTERiC.iiPHYSICAL FITNESS ASSESSMENT

Sec.i38.101.iiASSESSMENT REQUIRED. (a)iiExcept as provided by Subsection (b), a school district annually shall assess the physical fitness of students enrolled in grades 3 through 12.

(b)iiA school district is not required to assess a student for whom, as a result of disability or other condition identified by commissioner rule, the assessment instrument adopted under Section 38.102 is inappropriate.

Sec.i38.102.iiADOPTION OF ASSESSMENT INSTRUMENT. (a)iiThe commissioner by rule shall adopt an assessment instrument to be used by a school district in assessing student physical fitness under this subchapter.

(b)iiThe assessment instrument must:

(1)iibe based on factors related to student health, including the following factors that have been identified as essential to overall health and function:

(A)iiaerobic capacity;

(B)iibody composition; and

(C)iimuscular strength, endurance, and flexibility; and

(2)iiinclude criterion-referenced standards specific to a student's age and gender and based on the physical fitness level required for good health.

Sec.i38.103.iiREPORTING OF SUMMARY RESULTS. (a)iiA school district shall compile the results of the physical fitness assessment required by this subchapter and provide summary results, aggregated by grade level and any other appropriate category identified by commissioner rule, to the agency. The summary results may not contain the names of individual students or teachers.

(b)iiThe results of individual student performance on the physical fitness assessment instrument are confidential and may be released only in accordance with state and federal law.

Sec.i38.104.iiANALYSIS OF RESULTS. (a)iiThe agency shall analyze the results received by the agency under this subchapter and identify, for each school district, any correlation between the results and the following:

Saturday, May 26, 2007 SENATE JOURNAL 5039


(1)iistudent academic achievement levels;

(2)iistudent attendance levels;

(3)iistudent obesity;

(4)iistudent disciplinary problems; and

(5)iischool meal programs.

(b)iiThe agency may contract with a public or private entity for that entity to conduct all or part of the analysis required by Subsection (a).

(c)iiNot later than September 1 of each year, the agency shall report the findings of the analysis under this section of the results obtained during the preceding school year to the School Health Advisory Committee established under Section 1001.0711, Health and Safety Code, for use by the committee in:

(1)iiassessing the effectiveness of coordinated health programs provided by school districts in accordance with Section 38.014; and

(2)iideveloping recommendations for modifications to coordinated health program requirements or related curriculum.

Sec.i38.105.iiDONATIONS.iiThe agency and each school district may accept donations made to facilitate implementation of this subchapter.

Sec.i38.106.iiRULES. The commissioner shall adopt rules necessary to implement this subchapter.

SECTIONi4.iiNot later than September 1, 2008, the Texas Education Agency, in consultation with the School Health Advisory Committee established under Section 1001.0711, Health and Safety Code, shall provide a report to the legislature that details options and recommendations for providing moderate or vigorous daily physical activity for students for at least 30 minutes outside the seven-hour instructional day. The options and recommendations must be developed with consideration for the needs of students who are enrolled in multiple enrichment curriculum courses.

SECTIONi5.iiThe commissioner of education shall adopt the physical fitness assessment instrument required under Subchapter C, Chapter 38, Education Code, as added by this Act, and rules necessary to implement that subchapter not later than the date that enables the instrument to be used by school districts during the 2007-2008 school year.

SECTIONi6.iiNotwithstanding Section 11, Chapter 784, Acts of the 79th Legislature, Regular Session, 2005, Section 38.014, Education Code, as amended by that Act, applies beginning with the 2007-2008 school year.

SECTIONi7.iiSubsection (l), Section 28.002, Education Code, as amended by this Act, applies to students enrolled in kindergarten or a grade level below grade six beginning with the 2007-2008 school year and to students enrolled in grade levels six through eight beginning with the 2008-2009 school year.

SECTIONi8.iiExcept as otherwise provided by this Act, this Act applies beginning with the 2007-2008 school year. This Act shall apply to junior high or middle schools only upon adoption of a coordinated school health program for these grades by the Texas Education Agency.

5040 80th Legislature — Regular Session 68th Day


SECTIONi9.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

The Conference Committee Report on SBi530 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3154

Senator Deuell submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3154 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

DEUELL LAUBENBERG
SELIGER TAYLOR
VANiDEiPUTTE COLEMAN
ZERWAS
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3154 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1386

Senator Fraser submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi1386 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

FRASER P. KING
CARONA CHRISTIAN

Saturday, May 26, 2007 SENATE JOURNAL 5041


ELTIFE GARCIA
WATSON B. BROWN
WEST O'DAY
On the part of the Senate On the part of the House

The Conference Committee Report on HBi1386 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3581

Senator Wentworth submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3581 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

WENTWORTH C. HOWARD
NICHOLS BONNEN
PATRICK TALTON
CARONA
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3581 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 8

Senator Janek submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi8 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

5042 80th Legislature — Regular Session 68th Day


JANEK FLYNN
ZAFFIRINI EISSLER
VAN DE PUTTE ZEDLER
AVERITT TAYLOR
SELIGER BONNEN
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to random testing of certain high school students for steroid use and training of certain public school employees regarding steroid use.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiThe heading to Section 33.091, Education Code, is amended to read as follows:

Sec.i33.091.iiPREVENTION OF ILLEGAL STEROID USE; RANDOM TESTING.

SECTIONi2.iiSection 33.091, Education Code, is amended by amending Subsections (b) and (h) and adding Subsections (c-1), (d), (e), and (f) to read as follows:

(b)iiThe league shall adopt rules prohibiting a student from participating in an athletic competition sponsored or sanctioned by the league unless:

(1)iithe student agrees not to use steroids and, if the student is enrolled in high school, the student submits to random testing for the presence of illegal steroids in the student's body, in accordance with the program established under Subsection (d); and

(2)iithe league obtains from the student's parent a statement signed by the parent and acknowledging that:

(A)iithe parent's child, if enrolled in high school, may be subject to random steroid testing;

(B)iistate law prohibits possessing, dispensing, delivering, or administering a steroid in a manner not allowed by state law;

(C)i[(B)]iistate law provides that bodybuilding, muscle enhancement, or the increase of muscle bulk or strength through the use of a steroid by a person who is in good health is not a valid medical purpose;

(D)i[(C)]iionly a licensed practitioner with prescriptive authority [medical doctor] may prescribe a steroid for a person; and

(E)i[(D)]iia violation of state law concerning steroids is a criminal offense punishable by confinement in jail or imprisonment in the Texas Department of Criminal Justice.

(c-1)iiA school district shall require that each district employee who serves as an athletic coach at or above the seventh grade level for an extracurricular athletic activity sponsored or sanctioned by the league complete:

(1)iithe educational program developed by the league under Subsection (c); or

(2)iia comparable program developed by the district or a private entity with relevant expertise.

Saturday, May 26, 2007 SENATE JOURNAL 5043


(d)iiThe league shall adopt rules for the annual administration of a steroid testing program under which high school students participating in an athletic competition sponsored or sanctioned by the league are tested at multiple times throughout the year for the presence of steroids in the students' bodies. The testing program must:

(1)iirequire the random testing of a statistically significant number of high school students in this state who participate in athletic competitions sponsored or sanctioned by the league;

(2)iiprovide for the selection of specific students described by Subdivision (1) for testing through a process that randomly selects students from a single pool consisting of all students who participate in any activity for which the league sponsors or sanctions athletic competitions;

(3)iibe administered at approximately 30 percent of the high schools in this state that participate in athletic competitions sponsored or sanctioned by the league;

(4)iiprovide for a process for confirming any initial positive test result through a subsequent test conducted as soon as practicable after the initial test, using a sample that was obtained at the same time as the sample used for the initial test;

(5)iirequire the testing to be performed only by an anabolic steroid testing laboratory with a current certification from the Substance Abuse and Mental Health Services Administration of the United States Department of Health and Human Services, the World Anti-Doping Agency, or another appropriate national or international certifying organization; and

(6)iiprovide for a period of ineligibility from participation in an athletic competition sponsored or sanctioned by the league for any student with a confirmed positive test result or any student who refuses to submit to random testing.

(e)iiResults of a steroid test conducted under Subsection (d) are confidential and, unless required by court order, may be disclosed only to the student and the student's parent and the activity directors, principal, and assistant principals of the school attended by the student.

(f)iiFrom funds already appropriated, the agency shall pay the costs of the steroid testing program established under Subsection (d).

(h)iiSubsection (b)(1) does not apply to the use by a student of a steroid that is dispensed, prescribed, delivered, and administered by a medical practitioner for a valid medical purpose and in the course of professional practice, and a student is not subject to a period of ineligibility under Subsection (d)(6) on the basis of that steroid use.

SECTIONi3.iiThe University Interscholastic League shall conduct a study of potential mechanisms for future funding of the steroid testing program required by Section 33.091, Education Code, as amended by this Act. Not later than December 1, 2008, the league shall submit a report of its findings and recommendations for future funding of the program to the legislature.

SECTIONi4.iiThis Act applies beginning with the 2007-2008 school year.

SECTIONi5.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

5044 80th Legislature — Regular Session 68th Day


The Conference Committee Report on SBi8 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 909

Senator Whitmire submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi909 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

WHITMIRE MADDEN
BRIMER OLIVEIRA
HINOJOSA MCREYNOLDS
SELIGER HOCHBERG
WILLIAMS JONES
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to the continuation and functions of the Texas Board of Criminal Justice, the Texas Department of Criminal Justice, and the Correctional Managed Health Care Committee, and to the functions of the Board of Pardons and Paroles.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSubsection (a), Article 15.19, Code of Criminal Procedure, is amended to read as follows:

(a)iiIf the arrested person [accused] fails or refuses to give bail, as provided in [the preceding] Article 15.18, the arrested person [he] shall be committed to the jail of the county where the person [he] was arrested; and the magistrate committing the arrested person [him] shall immediately provide notice to [notify] the sheriff of the county in which the offense is alleged to have been committed regarding:

(1)ii[of] the arrest and commitment, which notice may be given by telegraph, [by] mail, or [by] other written means; and

(2)iiwhether the person was also arrested under a warrant issued under Section 508.251, Government Code [notice].

SECTIONi2.iiArticle 15.20, Code of Criminal Procedure, is amended to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 5045


Art.i15.20.iiDUTY OF SHERIFF RECEIVING NOTICE. (a)iiSubject to Subsection (b), the [The] sheriff receiving the notice of arrest and commitment under Article 15.19 shall forthwith go or send for the arrested person [prisoner] and have the arrested person [him] brought before the proper court or magistrate.

(b)iiA sheriff who receives notice under Article 15.19(a)(2) of a warrant issued under Section 508.251, Government Code, shall have the arrested person brought before the proper magistrate or court before the 11th day after the date the person is committed to the jail of the county in which the person was arrested.

SECTIONi3.iiArticle 15.21, Code of Criminal Procedure, is amended to read as follows:

Art.i15.21.iiPRISONER DISCHARGED IF NOT TIMELY DEMANDED. If the proper office of the county where the offense is alleged to have been committed does not demand the arrested person [prisoner] and take charge of the arrested person before the 11th day after the date the person [him within ten days from the day he] is committed to the jail of the county in which the person is arrested, the arrested person [such prisoner] shall be discharged from custody.

SECTIONi4.iiSubsection (a), Section 8, Article 42.09, Code of Criminal Procedure, is amended to read as follows:

(a)iiA county that transfers a defendant to the Texas Department of Criminal Justice under this article shall deliver to an officer designated by the department:

(1)iia copy of the judgment entered pursuant to Article 42.01 of this code, completed on a standardized felony judgment form described by Section 4 of that article;

(2)iia copy of any order revoking community supervision and imposing sentence pursuant to Section 23, Article 42.12, of this code, including:

(A)iiany amounts owed for restitution, fines, and court costs, completed on a standardized felony judgment form described by Section 4, Article 42.01, of this code; and

(B)iia copy of the client supervision plan prepared for the defendant by the community supervision and corrections department supervising the defendant, if such a plan was prepared;

(3)iia written report that states the nature and the seriousness of each offense and that states the citation to the provision or provisions of the Penal Code or other law under which the defendant was convicted;

(4)iia copy of the victim impact statement, if one has been prepared in the case under Article 56.03 of this code;

(5)iia statement as to whether there was a change in venue in the case and, if so, the names of the county prosecuting the offense and the county in which the case was tried;

(6)iia copy of the record of arrest for each offense;

(7)iiif requested, information regarding the criminal history of the defendant, including the defendant's state identification number if the number has been issued;

(8)iia copy of the indictment or information for each offense;

(9)iia checklist sent by the department to the county and completed by the county in a manner indicating that the documents required by this subsection and Subsection (c) of this section accompany the defendant;

5046 80th Legislature — Regular Session 68th Day


(10)iiif prepared, a copy of a presentence or postsentence investigation report prepared under Section 9, Article 42.12 of this code;

(11)iia copy of any detainer, issued by an agency of the federal government, that is in the possession of the county and that has been placed on the defendant; [and]

(12)iiif prepared, a copy of the defendant's Texas Uniform Health Status Update Form; and

(13)iia written description of a hold or warrant, issued by any other jurisdiction, that the county is aware of and that has been placed on or issued for the defendant.

SECTIONi5.iiSubsection (b), Section 5, Article 42.12, Code of Criminal Procedure, is amended to read as follows:

(b)iiOn violation of a condition of community supervision imposed under Subsection (a) of this section, the defendant may be arrested and detained as provided in Section 21 of this article. The defendant is entitled to a hearing limited to the determination by the court of whether it proceeds with an adjudication of guilt on the original charge. This determination is reviewable in the same manner as a revocation hearing conducted under Section 21 of this article in a case in which an adjudication of guilt had not been deferred [No appeal may be taken from this determination]. After an adjudication of guilt, all proceedings, including assessment of punishment, pronouncement of sentence, granting of community supervision, and defendant's appeal continue as if the adjudication of guilt had not been deferred. A court assessing punishment after an adjudication of guilt of a defendant charged with a state jail felony may suspend the imposition of the sentence and place the defendant on community supervision or may order the sentence to be executed, regardless of whether the defendant has previously been convicted of a felony.

SECTIONi6.iiSubdivision (1), Subsection (a), Section 15, Article 42.12, Code of Criminal Procedure, is amended to read as follows:

(1)iiOn conviction of a state jail felony under Section 481.115(b), 481.1151(b)(1), 481.116(b), 481.121(b)(3), or 481.129(g)(1), Health and Safety Code, that is punished under Section 12.35(a), Penal Code, the judge shall suspend the imposition of the sentence and place the defendant on community supervision, unless the defendant has previously been convicted of a felony or unless the conviction resulted from an adjudication of the guilt of a defendant previously placed on deferred adjudication community supervision for the offense, in which event the judge may suspend the imposition of the sentence and place the defendant on community supervision or may order the sentence to be executed. The provisions of this subdivision requiring the judge to suspend the imposition of the sentence and place the defendant on community supervision do not apply to a defendant who under Section 481.1151(b)(1), Health and Safety Code, possessed more than five abuse units of the controlled substance or under Section 481.121(b)(3), Health and Safety Code, possessed more than one pound of marihuana.

SECTIONi7.iiSection 15, Article 42.12, Code of Criminal Procedure, is amended by adding Subsections (i), (j), and (k) to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 5047


(i)iiIf a defendant is convicted of a state jail felony and the sentence is executed, the judge sentencing the defendant may release the defendant to a medically suitable placement if the judge determines that the defendant does not constitute a threat to public safety and the Texas Correctional Office on Offenders with Medical or Mental Impairments:

(1)iiin coordination with the Correctional Managed Health Care Committee prepares a case summary and medical report that identifies the defendant as being elderly, physically disabled, mentally ill, terminally ill, or mentally retarded or having a condition requiring long-term care; and

(2)iiin cooperation with the community supervision and corrections department serving the sentencing court, prepares for the defendant a medically recommended intensive supervision and continuity of care plan that:

(A)iiensures appropriate supervision of the defendant by the community supervision and corrections department; and

(B)iirequires the defendant to remain under the care of a physician at and reside in a medically suitable placement.

(j)iiThe Texas Correctional Office on Offenders with Medical or Mental Impairments shall submit to a judge who releases a defendant to an appropriate medical care facility under Subsection (i) a quarterly status report concerning the defendant's medical and treatment status.

(k)iiIf a defendant released to a medically suitable placement under Subsection (i) violates the terms of that release, the judge may dispose of the matter as provided by Subsections (e) and (f)(1).

SECTIONi8.iiSection 16, Article 42.12, Code of Criminal Procedure, is amended by adding Subsection (f) to read as follows:

(f)iiIn lieu of requiring a defendant to work a specified number of hours at a community service project or projects under Subsection (a), the judge may order a defendant to make a specified donation to a nonprofit food bank or food pantry in the community in which the defendant resides.

SECTIONi9.iiSection 19, Article 42.12, Code of Criminal Procedure, is amended by amending Subsections (a) and (b) and adding Subsection (g) to read as follows:

(a)iiExcept as otherwise provided by this subsection, a judge granting community supervision shall fix a fee of not less than $25 and not more than $60 per month to be paid during the period of community supervision by the defendant to the court of original jurisdiction or, in the case of an intrastate transfer described by Section 10(b) of this article, to the court to which jurisdiction of the defendant's case is transferred [by the defendant during the community supervision period]. The judge may make payment of the fee a condition of granting or continuing the community supervision. The judge may waive or reduce the fee or suspend a monthly payment of the fee if the judge determines that payment of the fee would cause the defendant a significant financial hardship.

(b)iiA [The] judge shall deposit any fee [the fees] received under Subsection (a) of this section in the special fund of the county treasury, to be used for the same purposes for which state aid may be used under Chapter 76, Government Code.

5048 80th Legislature — Regular Session 68th Day


(g)iiA court to which jurisdiction of a defendant's case is transferred under Section 10(b) of this article shall enter an order directing the defendant to pay the monthly fee described by Subsection (a) of this section to that court in lieu of paying the monthly fee to the court of original jurisdiction. To the extent of any conflict between an order issued under this subsection and an order issued by a court of original jurisdiction, the order entered under this subsection prevails.

SECTIONi10.iiSubsection (c), Article 61.06, Code of Criminal Procedure, is amended to read as follows:

(c)iiIn determining whether information is required to be removed from an intelligence database under Subsection (b), the three-year period does not include any period during which the individual who is the subject of the information is:

(1)iiconfined in a correctional facility operated by or under contract with the [institutional division or the state jail division of the] Texas Department of Criminal Justice; or

(2)iiconfined in a county jail in lieu of being confined in a correctional facility operated by or under contract with the Texas Department of Criminal Justice.

SECTIONi11.iiSection 76.004, Government Code, is amended by amending Subsection (a) and adding Subsection (h) to read as follows:

(a)iiAfter complying with the requirements of Subsection (h), the [The] judges described by Section 76.002 shall appoint a department director who must meet, at a minimum, the eligibility requirements for officers established under Section 76.005.

(h)iiWhen there is a vacancy in the position of department director, the judges described by Section 76.002 shall:

(1)iipublicly advertise the position;

(2)iipost a job description, the qualifications for the position, and the application requirements;

(3)iiconduct a competitive hiring process and adhere to state and federal equal employment opportunity laws; and

(4)iireview applicants who meet the posted qualifications and comply with the application requirements.

SECTIONi12.iiThe heading to Subtitle C, Title 3, Government Code, is amended to read as follows:

SUBTITLE C. LEGISLATIVE AGENCIES AND OVERSIGHT COMMITTEES

SECTIONi13.iiSubtitle C, Title 3, Government Code, is amended by adding Chapter 328 to read as follows:

CHAPTER 328. CRIMINAL JUSTICE LEGISLATIVE OVERSIGHT COMMITTEE

Sec.i328.001.iiDEFINITION. In this chapter, "committee" means the Criminal Justice Legislative Oversight Committee.

Sec.i328.002.iiESTABLISHMENT; COMPOSITION. (a)iiThe Criminal Justice Legislative Oversight Committee is established to provide objective research, analysis, and recommendations to help guide state criminal justice policies.

(b)iiThe committee is composed of six members as follows:

(1)iithe chair of the Senate Committee on Criminal Justice;

(2)iithe chair of the House Committee on Corrections;

(3)iitwo members of the senate appointed by the lieutenant governor; and

Saturday, May 26, 2007 SENATE JOURNAL 5049


(4)iitwo members of the house of representatives appointed by the speaker of the house of representatives.

(c)iiIn making appointments under Subsection (b)(3) or (4), the lieutenant governor or the speaker of the house of representatives, as applicable, shall give first consideration to members of the senate or the house of representatives who are members of the Senate Committee on Finance or the House Appropriations Committee.

(d)iiAn appointed member of the committee serves at the pleasure of the appointing official.

Sec.i328.003.iiPRESIDING OFFICER; TERM. (a)iiThe lieutenant governor and the speaker of the house of representatives shall appoint the presiding officer of the committee on an alternating basis.

(b)iiThe presiding officer of the committee serves a two-year term that expires February 1 of each odd-numbered year.

Sec.i328.004.iiPOWERS AND DUTIES. (a)iiThe committee shall:

(1)iiuse statistical analyses and other research methods to conduct an in-depth examination of the criminal justice system in this state that includes:

(A)iian assessment of the cost-effectiveness of the use of state and local funds in the criminal justice system;

(B)iian identification of critical problems in the criminal justice system; and

(C)iia determination of the long-range needs of the criminal justice system;

(2)iirecommend to the legislature:

(A)iistrategies to solve the problems identified under Subdivision (1)(B); and

(B)iipolicy priorities to address the long-range needs determined under Subdivision (1)(C); and

(3)iiadvise and assist the legislature in developing plans, programs, and proposed legislation to improve the effectiveness of the criminal justice system.

(b)iiThe committee has all other powers and duties provided to a special committee by:

(1)iiSubchapter B, Chapter 301;

(2)iithe rules of the senate and the house of representatives; and

(3)iipolicies of the senate and house committees on administration.

Sec.i328.005.iiMEETINGS. The committee shall meet at the call of the presiding officer.

Sec.i328.006.iiSTAFF; AUTHORITY TO CONTRACT. The committee may hire staff or may contract with universities or other suitable entities to assist the committee in carrying out the committee's duties. Funding to support the operation of the committee shall be provided from funds appropriated to the Texas Legislative Council.

Sec.i328.007.iiREPORT. Not later than January 1 of each odd-numbered year, the committee shall submit to the legislature a report that contains the recommendations described by Section 328.004(a)(2).

5050 80th Legislature — Regular Session 68th Day


SECTIONi14.iiSection 492.012, Government Code, is amended to read as follows:

Sec.i492.012.iiSUNSET PROVISION. The Texas Board of Criminal Justice and the Texas Department of Criminal Justice are subject to Chapter 325 (Texas Sunset Act). Unless continued in existence as provided by that chapter, the board and the department are abolished September 1, 2011 [2007].

SECTIONi15.iiChapter 492, Government Code, is amended by adding Sections 492.0125, 492.015, and 492.016 to read as follows:

Sec.i492.0125.iiCOMPLIANCE WITH SUNSET RECOMMENDATIONS. (a)iiThe department shall:

(1)iicomply with and implement the management action recommendations regarding the department adopted by the Sunset Advisory Commission on January 10, 2007, as a result of its review of the department; and

(2)iireport to the Sunset Advisory Commission not later than November 1, 2008, the information the Sunset Advisory Commission requires regarding the department's implementation of the recommendations under Subdivision (1).

(b)iiThis section expires June 1, 2009.

Sec.i492.015.iiUSE OF TECHNOLOGY. The board shall implement a policy requiring the department to use appropriate technological solutions to improve the department's ability to perform its functions. The policy must ensure that the public is able to interact with the department on the Internet.

Sec.i492.016.iiNEGOTIATED RULEMAKING; ALTERNATIVE DISPUTE RESOLUTION. (a)iiThe board shall develop and implement a policy to encourage the use of:

(1)iinegotiated rulemaking procedures under Chapter 2008 for the adoption of department rules; and

(2)iiappropriate alternative dispute resolution procedures under Chapter 2009 to assist in the resolution of internal and external disputes under the department's jurisdiction.

(b)iiThe department's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies.

(c)iiThe board shall designate a trained person to:

(1)iicoordinate the implementation of the policy adopted under Subsection (a);

(2)iiserve as a resource for any training needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and

(3)iicollect data concerning the effectiveness of those procedures, as implemented by the department.

SECTIONi16.iiChapter 493, Government Code, is amended by adding Section 493.0151 to read as follows:

Sec.i493.0151.iiDYNAMIC RISK ASSESSMENT OF SEX OFFENDERS. (a)iiFor purposes of this section, "sexual offense" means a criminal offense the conviction of which requires a person to register as a sex offender under Chapter 62, Code of Criminal Procedure.

Saturday, May 26, 2007 SENATE JOURNAL 5051


(b)iiBefore an inmate who is serving a sentence for a sexual offense is discharged or is released on parole or mandatory supervision from the department, the department shall use the dynamic risk assessment tool developed by the Council on Sex Offender Treatment under Section 110.164, Occupations Code, to assign the inmate a risk level of low, medium, or high.

(c)iiThe department shall conduct the risk assessment required by this section in addition to any other risk assessment the department is required to conduct.

SECTIONi17.iiChapter 493, Government Code, is amended by adding Section 493.026 to read as follows:

Sec.i493.026.iiCERTAIN INTERAGENCY COMMUNICATIONS PROHIBITED. The department, regardless of available capacity in the program, may not prohibit a parole panel from, or request a parole panel to refrain from, requiring an inmate to participate in and complete a treatment program operated by the department before the inmate is released on parole.

SECTIONi18.iiChapter 493, Government Code, is amended by adding Section 493.027 to read as follows:

Sec.i493.027.iiMANAGEMENT-EMPLOYEE MEETINGS. (a)iiThe director of the department may meet regularly with representatives of an eligible state employee organization, as certified by the comptroller under Section 403.0165, that represents department employees in disciplinary or grievance matters to identify:

(1)iidepartment policies or practices that impair the efficient, safe, and effective operation of department facilities; and

(2)iiissues that could lead to unnecessary conflicts between the department and department employees and that could undermine retention and recruitment of those employees.

(b)iiThe director annually shall submit a report to the Criminal Justice Legislative Oversight Committee on the outcome of any meetings held under this section. The report must:

(1)iibe signed by the director and each representative of an employee organization described by Subsection (a) that participates in the meetings; and

(2)iiinclude a statement from each party regarding the impact of the meetings on the recruitment and retention of department employees and on employee morale.

SECTIONi19.iiSection 494.008, Government Code, is amended by amending Subsection (b) and adding Subsection (b-1) to read as follows:

(b)iiThe department may allow employees who are granted law enforcement authority under this section to assist municipal, county, state, or federal law enforcement [peace] officers [in any county of the state] if:

(1)iithe assistance is requested for an emergency situation that presents an immediate or potential threat to public safety if assistance is not received, including [the purpose of] apprehending an escapee of a municipal or county jail or privately operated or federal correctional facility; and

(2)ii[if] the department determines that the assistance will not jeopardize the safety and security of the department and its personnel.

(b-1)iiAn employee who assists under Subsection (b) a law enforcement [peace] officer in the performance of the officer's duties has the same powers and duties as the officer requesting assistance.

5052 80th Legislature — Regular Session 68th Day


SECTIONi20.iiSubchapter B, Chapter 495, Government Code, is amended by adding Sections 495.025 and 495.026 to read as follows:

Sec.i495.025.iiCERTAIN COMMISSARY CONTRACTS; TASTE TESTS. (a)iiFor the purchase of commissary food goods, the department may conduct a taste test as consideration for a bid award only if, to conduct the test, the department contracts with a private marketing vendor, a university, or another independent organization that is experienced in food product evaluation and taste tests.

(b) In awarding a bid for commissary food goods for which a taste test is conducted, the department may use the taste test results as not more than 30 percent of the criteria used for the bid award.

(c) A contract into which the department enters under Subsection (a) must require the vendor, university, or other organization, at the expense of the vendor, university, or organization, to annually re-conduct the taste test to ensure that the product meets the original specifications of the request for proposal that resulted in the department entering a contract for the tested product.

Sec.i495.026.iiPRODUCT BUNDLING, BULK PURCHASING, AND VENDOR DISCOUNTS. The department may provide for the practice of bundling products into categories to ensure savings through bulk purchasing, discounts for advance invoice payments, and online ordering.

SECTIONi21.iiSubsections (b) and (c), Section 497.006, Government Code, are amended to read as follows:

(b)iiWith the approval of the board, the office may enter into a contract with a private business to conduct a program on or off property operated by the department. Except as provided by Subsection (c), a contract entered into under this section must comply with all requirements of the Private Sector/Prison Industry Enhancement Certification Program operated by the Bureau of Justice Assistance and authorized by 18 U.S.C. Section 1761. In determining under Section 497.062 the number of participants participating in private sector prison industries programs, the department shall count the number of work program participants participating in a program under a contract entered into under this section. Not more than 700 [500] work program participants may participate in programs under contracts entered into under this subsection.

(c)iiA contract for the provision of services under this section must:

(1)iibe certified by the Private Sector Prison Industries Oversight Authority as complying with all requirements of the Private Sector/Prison Industry Enhancement Certification Program operated by the Bureau of Justice Assistance and authorized by 18 U.S.C. Section 1761, other than a requirement relating to the payment of prevailing wages, so long as the contract requires payment of not less than the federal minimum wage;

(2)iibe certified by the authority, under rules adopted under Section 497.059, that the contract would not cause the loss of existing jobs of a specific type provided by the contracting party in this state; and

(3)iibe approved by the board.

SECTIONi22.iiSubchapter D, Chapter 499, Government Code, is amended by adding Section 499.072 to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 5053


Sec.i499.072.iiLOCATION OF CENTRAL PRISON UNIT. (a)iiThe department shall conduct a feasibility study of relocating the Central Prison Unit and the adjoining prison housing units from their current location in Sugar Land, Texas, to a location that more appropriately addresses the needs of the correctional system.

(b)iiIf relocation is determined to be in the best interest of the correctional system and the City of Sugar Land, during the course of the study the department shall examine:

(1)iithe costs and benefits of relocating the Central Prison Unit and the adjoining prison housing units;

(2)iiappropriate measures to ensure that adequate easements are granted to allow development of surrounding property; and

(3)iian anticipated timeline for the relocation.

SECTIONi23.iiSubchapter A, Chapter 501, Government Code, is amended by adding Section 501.011 to read as follows:

Sec.i501.011.iiZERO-TOLERANCE POLICY. (a)iiThe department shall adopt a zero-tolerance policy concerning the detection, prevention, and punishment of the sexual abuse, including consensual sexual contact, of inmates in the custody of the department.

(b)iiThe department shall establish standards for reporting and collecting data on the sexual abuse of inmates in the custody of the department.

(c)iiThe department shall establish a procedure for inmates in the custody of the department and department employees to report incidents of sexual abuse involving an inmate in the custody of the department. The procedure must designate a person employed at the department facility in which the abuse is alleged to have occurred as well as a person who is employed at the department's headquarters to whom a person may report an incident of sexual abuse.

(d)iiThe department shall prominently display the following notice in the office of the chief administrator of each department facility, the employees' break room of each department facility, the cafeteria of each department facility, and at least six additional locations in each department facility:

THE TEXAS LEGISLATURE HAS ADOPTED A ZERO-TOLERANCE POLICY REGARDING THE SEXUAL ABUSE, INCLUDING CONSENSUAL SEXUAL CONTACT, OF AN INMATE IN THE CUSTODY OF THE DEPARTMENT. ANY SUCH VIOLATION MUST BE REPORTED TO __________.

SECTIONi24.iiSubchapter B, Chapter 501, Government Code, is amended by adding Sections 501.059 and 501.064 to read as follows:

Sec.i501.059.iiSCREENING FOR AND EDUCATION CONCERNING FETAL ALCOHOL EXPOSURE DURING PREGNANCY. (a)iiThe department shall establish a screening program to identify female inmates who are:

(1)iibetween the ages of 18 and 44;

(2)iisentenced to a term of confinement not to exceed two years; and

(3)iiat risk for having a pregnancy with alcohol-related complications, including giving birth to a child with alcohol-related birth defects.

(b)iiThe screening program established under Subsection (a) must:

5054 80th Legislature — Regular Session 68th Day


(1)iievaluate the family planning practices of each female inmate described by Subsection (a) in relation to the inmate's consumption of alcohol and risk of having a pregnancy with alcohol-related complications;

(2)iiinclude an objective screening tool to be used by department employees administering the screening program; and

(3)iioccur during the diagnostic process or at another time determined by the department.

(c)iiThe department shall provide:

(1)iia brief substance abuse intervention to all female inmates identified by the screening program as being at risk for having a pregnancy with alcohol-related complications; and

(2)iian educational brochure describing the risks and dangers of consuming alcohol during pregnancy to all female inmates.

Sec.i501.064.iiAVAILABILITY OF CORRECTIONAL HEALTH CARE INFORMATION TO INMATES. The department shall ensure that the following information is available to any inmate confined in a facility operated by or under contract with the department:

(1)iia description of the level, type, and variety of health care services available to inmates;

(2)iithe formulary used by correctional health care personnel in prescribing medication to inmates;

(3)iicorrectional managed care policies and procedures; and

(4)iithe process for the filing of inmate grievances concerning health care services provided to inmates.

SECTIONi25.iiSection 501.132, Government Code, is amended to read as follows:

Sec.i501.132.iiAPPLICATION OF SUNSET ACT. The Correctional Managed Health Care Committee is subject to review under Chapter 325 (Texas Sunset Act) regarding the committee's role and responsibilities. The committee shall be reviewed during the period in which the Texas Department of Criminal Justice is reviewed [Unless continued in existence as provided by that chapter, the committee is abolished and this subchapter expires September 1, 2007].

SECTIONi26.iiSubchapter E, Chapter 501, Government Code, is amended by adding Section 501.1325 to read as follows:

Sec.i501.1325.iiCOMPLIANCE WITH SUNSET RECOMMENDATIONS. (a)iiThe committee, The University of Texas Medical Branch at Galveston, and the Texas Tech University Health Sciences Center shall:

(1)iicomply with and implement the management action recommendations regarding the committee, The University of Texas Medical Branch at Galveston, and the Texas Tech University Health Sciences Center adopted by the Sunset Advisory Commission on January 10, 2007, as a result of its review of the committee; and

(2)iireport to the Sunset Advisory Commission not later than November 1, 2008, the information the Sunset Advisory Commission requires regarding the committee and the health care providers' implementation of the recommendations under Subdivision (1).

(b)iiThis section expires June 1, 2009.

Saturday, May 26, 2007 SENATE JOURNAL 5055


SECTIONi27.iiSection 501.137, Government Code, is amended to read as follows:

Sec.i501.137.iiPRESIDING OFFICER. The governor shall designate a public [physician] member of the committee who is licensed to practice medicine in this state as presiding officer. The presiding officer serves in that capacity at the will of the governor.

SECTIONi28.iiSubsection (a), Section 501.148, Government Code, is amended to read as follows:

(a)iiThe committee shall:

(1)iidevelop statewide policies for the delivery of correctional health care;

(2)iimaintain [the] contracts for health care services in consultation with the department and the health care providers;

(3)iicommunicate with the department and the legislature regarding the financial needs of the correctional health care system;

(4)iiallocate funding made available through legislative appropriations for correctional health care;

(5)iimonitor the expenditures of The University of Texas Medical Branch at Galveston and the Texas Tech University Health Sciences Center to ensure that those expenditures comply with applicable statutory and contractual requirements;

(6)iiserve as a dispute resolution forum [(2)iidetermine a capitation rate reflecting the true cost of correctional health care, including necessary catastrophic reserves;

[(3)iimonitor and develop reports on general quality of care issues;

[(4)iiact as an independent third party in the allocation of money to inmate health care providers, including the allocation of money between The University of Texas Medical Branch at Galveston and the Texas Tech University Health Sciences Center;

[(5)iiact as an independent third party for the purpose of dispute resolution] in the event of a disagreement relating to inmate health care services between:

(A)iithe department and the health care providers; or

(B)iiThe University of Texas Medical Branch at Galveston and the Texas Tech University Health Sciences Center;

(7)iiaddress problems found through monitoring activities by the department and health care providers [and

[(6)iienforce compliance with contract provisions], including requiring corrective action if care does not meet expectations as determined by those [quality of care] monitoring activities;

(8)iiidentify and address long-term needs of the correctional health care system; and

(9)iireport to the Texas Board of Criminal Justice at the board's regularly scheduled meeting each quarter on the committee's policy decisions, the financial status of the correctional health care system, and corrective actions taken by or required of the department or the health care providers.

SECTIONi29.iiSection 501.150, Government Code, is amended to read as follows:

5056 80th Legislature — Regular Session 68th Day


Sec.i501.150.iiQUALITY OF CARE MONITORING BY THE DEPARTMENT AND HEALTH CARE PROVIDERS. (a)iiThe committee shall establish a procedure for monitoring the quality of care delivered by the health care providers. Under the procedure, the department shall monitor the quality of care delivered by the health care providers, including [department's monitoring activities must be limited to] investigating medical grievances, ensuring access to medical care, and conducting periodic operational reviews of medical care provided at its units.

(b)iiThe department and the medical care providers shall cooperate in monitoring quality of care. The clinical and professional resources of the health care providers shall be used to the greatest extent feasible for clinical oversight of quality of care issues. The department may require the health care providers to take corrective action if the care provided does not meet expectations as determined by quality of care monitoring.

(c)iiThe department and the medical care providers shall communicate the results of their monitoring activities, including a list of and the status of any corrective actions required of the health care providers, to the committee and to the Texas Board of Criminal Justice.

SECTIONi30.iiSubsections (a) and (b), Section 501.151, Government Code, are amended to read as follows:

(a)iiThe committee shall maintain a file on each written complaint filed with the committee by a member of the general public. The file must include:

(1)iithe name of the person who filed the complaint;

(2)iithe date the complaint is received by the committee;

(3)iithe subject matter of the complaint;

(4)iithe name of each person contacted in relation to the complaint;

(5)iia summary of the results of the review or investigation of the complaint; and

(6)iian explanation of the reason the file was closed, if the committee closed the file without taking action other than to investigate the complaint.

(b)iiThe committee shall make information available describing its procedures for [provide to the person filing the complaint and to each person who is a subject of the complaint a copy of the committee's policies and procedures relating to] complaint investigation and resolution.

SECTIONi31.iiSubchapter E, Chapter 501, Government Code, is amended by adding Sections 501.153, 501.154, and 501.155 to read as follows:

Sec.i501.153.iiALTERNATIVE DISPUTE RESOLUTION. (a)iiThe committee shall develop and implement a policy to encourage the use of appropriate alternative dispute resolution procedures under Chapter 2009 to assist in the resolution of internal and external disputes under the committee's jurisdiction.

(b)iiThe committee's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies.

(c)iiThe committee shall designate a trained person to:

(1)iicoordinate the implementation of the policy adopted under Subsection (a);

Saturday, May 26, 2007 SENATE JOURNAL 5057


(2)iiserve as a resource for any training needed to implement the procedures for alternative dispute resolution; and

(3)iicollect data concerning the effectiveness of those procedures, as implemented by the committee.

Sec.i501.154.iiUSE OF TECHNOLOGY. The committee shall implement a policy requiring the committee to use appropriate technological solutions to improve the committee's ability to perform its functions. The policy must ensure that the public is able to interact with the committee on the Internet.

Sec.i501.155.iiAVAILABILITY OF CORRECTIONAL HEALTH CARE INFORMATION TO THE PUBLIC. (a)iiThe committee shall ensure that the following information is available to the public:

(1)iicontracts between the department, the committee, and health care providers, and other information concerning the contracts, including a description of the level, type, and variety of health care services available to inmates;

(2)iithe formulary used by correctional health care personnel in prescribing medication to inmates;

(3)iicorrectional managed care policies and procedures;

(4)iiquality assurance statistics and data, to the extent permitted by law;

(5)iigeneral information concerning the costs associated with correctional health care, including at a minimum:

(A)iiquarterly and monthly financial reports; and

(B)iiaggregate cost information for:

(i)iisalaries and benefits;

(ii)iiequipment and supplies;

(iii)iipharmaceuticals;

(iv)iioffsite medical services; and

(v)iiany other costs to the correctional health care system;

(6)iiaggregate statistical information concerning inmate deaths and the prevalence of disease among inmates;

(7)iithe process for the filing of inmate grievances concerning health care services provided to inmates;

(8)iigeneral statistics on the number and types of inmate grievances concerning health care services provided to inmates filed during the preceding quarter;

(9)iicontact information for a member of the public to submit an inquiry to or file a complaint with the department or a health care provider;

(10)iiinformation concerning the regulation and discipline of health care professionals, including contact information for the Health Professions Council and a link to the council's website;

(11)iiunit data regarding health care services, including hours of operation, available services, general information on health care staffing at the unit, statistics on an inmate's ability to access care at the unit in a timely manner, and, if the unit is accredited by a national accrediting body, the most recent accreditation review date; and

(12)iidates and agendas for quarterly committee meetings and the minutes from previous committee meetings.

5058 80th Legislature — Regular Session 68th Day


(b)iiThe committee shall make the information described by Subsection (a) available on the committee's website and, on request, in writing. The committee shall cooperate with the department and the health care providers to ensure that the committee's website:

(1)iiis linked to the websites of the department and the health care providers;

(2)iiis accessible through the State of Texas website; and

(3)iican be located through common search engines.

(c)iiIn determining the specific information to be made available under this section, the committee shall cooperate with the department to ensure that public disclosure of the information would not pose a security threat to any individual or to the criminal justice system.

SECTIONi32.iiSubchapter B, Chapter 507, Government Code, is amended by adding Section 507.028 to read as follows:

Sec.i507.028.iiSCREENING FOR AND EDUCATION CONCERNING FETAL ALCOHOL EXPOSURE DURING PREGNANCY. (a)iiThe department shall establish and use a screening program in state jail felony facilities that is substantially similar to the program established and used by the department under Section 501.059.

(b)iiThe department shall provide to all female defendants confined in state jail felony facilities an educational brochure describing the risks and dangers of consuming alcohol during pregnancy.

SECTIONi33.iiSection 508.033, Government Code, is amended by amending Subsections (a) through (d) and adding Subsection (f) to read as follows:

(a)iiA person is not eligible for appointment as a member of the board or for employment as a parole commissioner if the person or the person's spouse:

(1)iiis employed by or participates in the management of a business entity or other organization receiving funds from the department or the board;

(2)iiowns or controls, directly or indirectly, more than a 10-percent interest in a business entity or other organization:

(A)iiregulated by the department; or

(B)iireceiving funds from the department or the board; or

(3)iiuses or receives a substantial amount of tangible goods, services, or funds from the department or the board, other than compensation or reimbursement authorized by law for board membership, attendance, or expenses.

(b)iiIn determining eligibility under Subsection (a)(3), the compensation or reimbursement that a board member's spouse or parole commissioner's spouse receives as an employee of the board or the department may not be considered. This subsection does not affect any restriction on employment or board membership imposed by any other law.

(c)iiA person may not serve as a parole commissioner, may not be a member of the board, and may not be an employee of the division or the board employed in a "bona fide executive, administrative, or professional capacity," as that phrase is used for purposes of establishing an exemption to the overtime provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) and its subsequent amendments, if:

(1)iithe person is an officer, employee, or paid consultant of a Texas trade association in the field of criminal justice; or

Saturday, May 26, 2007 SENATE JOURNAL 5059


(2)iithe person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of criminal justice.

(d)iiA person who is required to register as a lobbyist under Chapter 305 because of the person's activities for compensation in or on behalf of a profession related to the operation of the board may not:

(1)iiserve as a member of the board or as a parole commissioner; or

(2)iiact as the general counsel to the board or division.

(f)iiA person who is a current or former employee of the department may not serve as a parole commissioner before the second anniversary of the date the person's employment with the department ceases, and a member of the board may not serve as a parole commissioner before the second anniversary of the date the person's membership on the board ceases.

SECTIONi34.iiSubsection (b), Section 508.036, Government Code, is amended to read as follows:

(b)iiThe board shall:

(1)iiadopt rules relating to the decision-making processes used by the board and parole panels;

(2)iiprepare information of public interest describing the functions of the board and make the information available to the public and appropriate state agencies;

(3)iicomply with federal and state laws related to program and facility accessibility; [and]

(4)iiprepare annually a complete and detailed written report that meets the reporting requirements applicable to financial reporting provided in the General Appropriations Act and accounts for all funds received and disbursed by the board during the preceding fiscal year; and

(5)iidevelop and implement policies that provide the public with a reasonable opportunity to appear before the board and to speak on any issue under the jurisdiction of the board, with the exception of an individual parole determination or clemency recommendation.

SECTIONi35.iiSection 508.036, Government Code, is amended by adding Subsection (e) to read as follows:

(e)iiThe board, in accordance with the rules and procedures of the Legislative Budget Board, shall prepare, approve, and submit a legislative appropriations request that is separate from the legislative appropriations request for the department and is used to develop the board's budget structure. The board shall maintain the board's legislative appropriations request and budget structure separately from those of the department.

SECTIONi36.iiSubchapter B, Chapter 508, Government Code, is amended by adding Sections 508.053, 508.054, and 508.055 to read as follows:

Sec.i508.053.iiUSE OF TECHNOLOGY. The board shall implement a policy requiring the board to use appropriate technological solutions to improve the board's ability to perform its functions. The policy must ensure that the public is able to interact with the board on the Internet.

5060 80th Legislature — Regular Session 68th Day


Sec.i508.054.iiRECORDS OF COMPLAINTS. (a)iiThe board shall maintain a system to promptly and efficiently act on complaints filed with the board. The board shall maintain information about parties to the complaint, the subject matter of the complaint, a summary of the results of the review or investigation of the complaint, and its disposition.

(b)iiThe board shall make information available describing its procedures for complaint investigation and resolution.

(c)iiThe board shall periodically notify the complaint parties of the status of the complaint until final disposition.

(d)iiThis section does not apply to a complaint about an individual parole determination or clemency recommendation.

Sec.i508.055.iiNEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE RESOLUTION. (a)iiThe board shall develop and implement a policy to encourage the use of:

(1)iinegotiated rulemaking procedures under Chapter 2008 for the adoption of board rules; and

(2)iiappropriate alternative dispute resolution procedures under Chapter 2009 to assist in the resolution of internal disputes under the board's jurisdiction.

(b)iiThe board's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies.

(c)iiThe board shall designate a trained person to:

(1)iicoordinate the implementation of the policy adopted under Subsection (a);

(2)iiserve as a resource for any training needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and

(3)iicollect data concerning the effectiveness of those procedures, as implemented by the board.

SECTIONi37.iiSubchapter D, Chapter 508, Government Code, is amended by adding Section 508.1131 to read as follows:

Sec.i508.1131.iiSALARY CAREER LADDER FOR PAROLE OFFICERS. (a)iiThe executive director shall adopt a salary career ladder for parole officers. The salary career ladder must base a parole officer's salary on the officer's classification and years of service with the department.

(b)iiFor purposes of the salary schedule, the department shall classify all parole officer positions as Parole Officer I, Parole Officer II, Parole Officer III, Parole Officer IV, or Parole Officer V.

(c)iiUnder the salary career ladder adopted under Subsection (a), a parole officer to whom the schedule applies and who received an overall evaluation of at least satisfactory in the officer's most recent annual evaluation is entitled to an annual salary increase, during each of the officer's first 10 years of service in a designated parole officer classification as described by Subsection (b), equal to one-tenth of the difference between:

(1)iithe officer's current annual salary; and

(2)iithe minimum annual salary of a parole officer in the next highest classification.

Saturday, May 26, 2007 SENATE JOURNAL 5061


SECTIONi38.iiSubdivision (1), Subsection (g), Section 508.117, Government Code, is amended to read as follows:

(1)ii"Close relative of a deceased victim" means a person who was:

(A)iithe spouse of the victim at the time of the victim's death;

(B)iia parent of the deceased victim; [or]

(C)iian adult brother, sister, or child of the deceased victim; or

(D)iithe nearest relative of the deceased victim by consanguinity, if the persons described by Paragraphs (A) through (C) are deceased or are incapacitated due to physical or mental illness or infirmity.

SECTIONi39.iiSection 508.144, Government Code, is amended by amending Subsections (a) and (b) and adding Subsections (d), (e), and (f) to read as follows:

(a)iiThe board shall:

(1)iidevelop according to an acceptable research method the parole guidelines that are the basic criteria on which a parole decision is made;

(2)iibase the guidelines on the seriousness of the offense and the likelihood of a favorable parole outcome;

(3)iiensure that the guidelines require consideration of an inmate's progress in any programs in which the inmate participated during the inmate's term of confinement; and

(4)iiimplement the guidelines[; and

[(4)iireview the guidelines periodically].

(b)iiIf a board member or parole commissioner deviates from the parole guidelines in voting on a parole decision, the member or parole commissioner shall:

(1)iiproduce a [brief] written statement describing in detail the specific circumstances regarding the departure from the guidelines; [and]

(2)iiplace a copy of the statement in the file of the inmate for whom the parole decision was made; and

(3)iiprovide a copy of the statement to the inmate.

(d)iiThe board shall meet annually to review and discuss the parole guidelines developed under Subsection (a). The board may consult outside experts to assist with the review. The board must consider:

(1)iihow the parole guidelines serve the needs of parole decision-making;

(2)iihow well the parole guidelines reflect parole panel decisions; and

(3)iihow well parole guidelines predict successful parole outcomes.

(e)iiBased on the board's review of the parole guidelines under Subsection (d), the board may:

(1)iiupdate the guidelines by:

(A)iiincluding new risk factors; or

(B)iichanging the values of offense severity or risk factor scores; or

(2)iimodify the recommended parole approval rates under the guidelines, if parole approval rates differ significantly from the recommended rates.

(f)iiThe board is not required to hold an open meeting to review the guidelines as required by Subsection (d), but any modifications or updates to the guidelines made by the board under Subsection (e) must occur in an open meeting.

SECTIONi40.iiSubchapter E, Chapter 508, Government Code, is amended by adding Section 508.1445 to read as follows:

5062 80th Legislature — Regular Session 68th Day


Sec.i508.1445.iiANNUAL REPORT ON GUIDELINES REQUIRED. (a)iiThe board annually shall submit a report to the Criminal Justice Legislative Oversight Committee, the lieutenant governor, the speaker of the house of representatives, and the presiding officers of the standing committees in the senate and house of representatives primarily responsible for criminal justice regarding the board's application of the parole guidelines adopted under Section 508.144.

(b)iiThe report must include:

(1)iia brief explanation of the parole guidelines, including how the board:

(A)iidefines the risk factors and offense severity levels; and

(B)iidetermines the recommended parole approval rates for each guideline score;

(2)iia comparison of the recommended approval rates under the parole guidelines to the actual approval rates for individual parole panel members, regional offices, and the state as a whole; and

(3)iia description of instances in which the actual parole approval rates do not meet the recommended approval rates under the parole guidelines, an explanation of the variations, and a list of actions that the board has taken or will take to meet the guidelines.

SECTIONi41.iiSubsection (c), Section 508.155, Government Code, is amended to read as follows:

(c)iiThe division may allow a releasee to serve the remainder of the releasee's sentence without supervision and without being required to report if a parole supervisor at the regional level has approved the releasee's early release from supervision under Section 508.1555[:

[(1)iithe releasee has been under supervision for at least one-half of the time that remained on the releasee's sentence when the releasee was released from imprisonment;

[(2)iiduring the period of supervision the releasee's parole or release to mandatory supervision has not been revoked; and

[(3)iithe division determines:

[(A)iithat the releasee has made a good faith effort to comply with any restitution order imposed on the releasee by a court; and

[(B)iithat allowing the releasee to serve the remainder of the releasee's sentence without supervision and reporting is in the best interest of society].

SECTIONi42.iiSubchapter E, Chapter 508, Government Code, is amended by adding Section 508.1555 to read as follows:

Sec.i508.1555.iiPROCEDURE FOR THE EARLY RELEASE FROM SUPERVISION OF CERTAIN RELEASEES. (a)iiA parole officer annually shall identify the releasees under the parole officer's supervision who are eligible for early release from supervision under Section 508.155(c). A releasee is eligible for early release if:

(1)iithe releasee has been under supervision for at least one-half of the time that remained on the releasee's sentence when the releasee was released from imprisonment;

(2)iiduring the preceding two-year period, the releasee has not committed any violation of the rules or conditions of release;

Saturday, May 26, 2007 SENATE JOURNAL 5063


(3)iiduring the period of supervision the releasee's parole or release to mandatory supervision has not been revoked; and

(4)iithe division determines:

(A)iithat the releasee has made a good faith effort to comply with any restitution order imposed on the releasee by a court; and

(B)iithat allowing the releasee to serve the remainder of the releasee's sentence without supervision and reporting is in the best interest of society.

(b)iiAfter identifying any releasees who are eligible for early release under Subsection (a), the parole officer shall review the eligible releasees, including any releasees the parole officer has previously declined to recommend for early release, to determine if a recommendation for early release from supervision is appropriate. In conducting the review and determining recommendations, the parole officer shall consider whether the releasee:

(1)iihas a low risk of recidivism as determined by an assessment developed by the department; and

(2)iihas made a good faith effort to comply with the conditions of release.

(c)iiA parole officer shall forward to the parole supervisor at the regional level any recommendations for early release the parole officer makes under Subsection (b). If the parole supervisor approves the recommendation, the division shall allow a releasee to serve the remainder of the releasee's sentence without supervision and without being required to report as authorized by Section 508.155.

SECTIONi43.iiSubchapter B, Chapter 659, Government Code, is amended by adding Section 659.0155 to read as follows:

Sec.i659.0155.iiPAYMENT TO EMPLOYEES OF TEXAS DEPARTMENT OF CRIMINAL JUSTICE FOR OVERTIME. The Texas Department of Criminal Justice shall compensate a person employed by the department for any overtime accrued by the employee for which the employee is entitled to compensation under Section 659.015 in the same month the department compensates employees at the regular rate of pay for the period in which the employee accrued the overtime.

SECTIONi44.iiSubsection (a), Section 614.0032, Health and Safety Code, is amended to read as follows:

(a)iiThe office shall perform duties imposed on the office by Section 508.146, Government Code, and Section 15(i), Article 42.12, Code of Criminal Procedure.

SECTIONi45.iiSection 32.024, Human Resources Code, is amended by adding Subsection (dd) to read as follows:

(dd)iiNothwithstanding any other law, an inmate released on medically recommended intensive supervision under Section 508.146, Government Code, who otherwise meets the eligibility requirements for the medical assistance program is not ineligible for the program solely on the basis of the conviction or adjudication for which the inmate was sentenced to confinement.

SECTIONi46.iiSubchapter D, Chapter 110, Occupations Code, is amended by adding Section 110.164 to read as follows:

Sec.i110.164.iiDYNAMIC RISK ASSESSMENT TOOL. (a)iiThe council shall develop or adopt a dynamic risk assessment tool to be used in determining the likelihood that a person who is confined in a penal institution and will become subject

5064 80th Legislature — Regular Session 68th Day


to Chapter 62, Code of Criminal Procedure, on being released from the institution will commit an offense described by Article 62.001(5), Code of Criminal Procedure, after being released from the institution.

(b)iiThe dynamic risk assessment tool must enable the assignment to a person of a risk level of low, medium, or high.

SECTIONi47.iiSubsection (c), Section 110.302, Occupations Code, is amended to read as follows:

(c)iiThe [Texas Board of Criminal Justice or the] governing board of the Texas Youth Commission may vote to exempt employees of the [Texas Department of Criminal Justice or the] Texas Youth Commission[, as appropriate,] from a specific licensing requirement imposed under this section if the board determines that the requirement causes financial or operational hardship on the agency. The Texas Board of Criminal Justice may not exempt any employee of the Texas Department of Criminal Justice from a licensing requirement imposed by this section for any reason.

SECTIONi48.iiSubsection (a), Section 721.003, Transportation Code, is amended to read as follows:

(a)iiThe governing bodies of the following state agencies or divisions by rule may exempt from the requirements of Section 721.002 a motor vehicle that is under the control and custody of the agency or division:

(1)iiTexas Commission on Fire Protection;

(2)iiTexas State Board of Pharmacy;

(3)ii[Texas] Department of State Health Services and Department of Aging and Disability Services [Mental Health and Mental Retardation];

(4)iiDepartment of Public Safety of the State of Texas;

(5)ii[the institutional division or the pardons and paroles division of the] Texas Department of Criminal Justice;

(6)iiBoard of Pardons and Paroles;

(7)iiParks and Wildlife Department;

(8)iiRailroad Commission of Texas;

(9)iiTexas Alcoholic Beverage Commission;

(10)iiTexas Department of Banking;

(11)ii[Savings and Loan] Department of Savings and Mortgage Lending;

(12)iiTexas Juvenile Probation Commission;

(13)iiTexas [Natural Resource Conservation] Commission on Environmental Quality;

(14)iiTexas Youth Commission;

(15)iiTexas Lottery Commission;

(16)iithe office of the attorney general;

(17)iiTexas Department of Insurance; and

(18)iian agency that receives an appropriation under an article of the General Appropriations Act that appropriates money to the legislature.

SECTIONi49.ii(a)iiThe Texas Department of Criminal Justice shall study the operation and maintenance of different types of electronic monitoring equipment. The study conducted under this subsection must examine:

Saturday, May 26, 2007 SENATE JOURNAL 5065


(1)iithe relative cost-effectiveness of using various types of electronic monitoring equipment and funding proposals for costs to the department associated with the various types of equipment;

(2)iithe relative level of supervision provided by different types of electronic monitoring equipment; and

(3)iithe different rehabilitation and treatment options afforded by different types of electronic monitoring equipment.

(b)iiNot later than December 1, 2009, the Texas Department of Criminal Justice shall submit a report summarizing the findings of the study conducted under Subsection (a) of this section to the governor, the lieutenant governor, the speaker of the house of representatives, and appropriate standing committees of the legislature.

SECTIONi50.ii(a)iiThe Texas Department of Criminal Justice shall conduct a study regarding:

(1)iithe number of inmates confined in facilities operated by or under contract with the department who pose no significant risk of recidivism or danger to society due to the:

(A)iiinmate's age or health;

(B)iinature of the crime committed by the inmate; or

(C)iireasonably successful rehabilitation of the inmate while incarcerated;

(2)iialternatives to confining inmates described by Subdivision (1) of this subsection in a facility operated by or under contract with the department;

(3)iito the extent permitted by federal law, the possibility of conducting a prisoner exchange with the United Mexican States or another foreign country in which foreign nationals in the custody of the department are exchanged for United States citizens incarcerated in another country; and

(4)iimeasures that the department can take to assure that inmates sent to a foreign country under a prisoner exchange described by Subdivision (3) of this subsection will not be released early.

(b)iiThe Texas Department of Criminal Justice shall submit a report to the members of the 81st Legislature regarding the results of the study conducted under Subsection (a) of this section.

SECTIONi51.iiThe change in law made by this Act to Subsection (a), Article 15.19, and Articles 15.20 and 15.21, Code of Criminal Procedure, apply only to a person who, on or after the effective date of this Act, is arrested under a warrant, regardless of the date on which the warrant under which the person is arrested was issued.

SECTIONi52.iiThe change in law made by this Act to Subsection (a), Section 8, Article 42.09, Code of Criminal Procedure, applies only to a defendant transferred to the Texas Department of Criminal Justice on or after the effective date of this Act. A defendant transferred to the department before the effective date of this Act is covered by the law in effect when the defendant is transferred, and the former law is continued in effect for that purpose.

5066 80th Legislature — Regular Session 68th Day


SECTIONi53.iiSubsection (b), Section 5, Article 42.12, Code of Criminal Procedure, as amended by this Act, applies to a hearing conducted under that section on or after the effective date of this Act, regardless of when the adjudication of guilt was originally deferred or when the offense giving rise to the grant of deferred adjudication community supervision was committed.

SECTIONi54.iiThe change in law made by this Act in amending Subdivision (1), Subsection (a), Section 15, Article 42.12, Code of Criminal Procedure, applies only to a defendant placed on deferred adjudication community supervision for an offense committed on or after the effective date of this Act. A defendant placed on deferred adjudication for an offense committed before the effective date of this Act is covered by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense was committed before the effective date of this Act if any element of the offense was committed before that date.

SECTIONi55.ii(a)iiThe speaker of the house of representatives and the lieutenant governor shall appoint members to the Criminal Justice Legislative Oversight Committee under Chapter 328, Government Code, as added by this Act, not later than January 1, 2008.

(b)iiNotwithstanding Section 328.003, Government Code, as added by this Act, the speaker of the house of representatives, not later than January 15, 2008, shall appoint a presiding officer for the committee. The presiding officer appointed by the speaker of the house of representatives under this section serves a one-year term that begins on February 1, 2008, and ends on February 1, 2009.

SECTIONi55A.iiSection 493.0151, Government Code, as added by this Act, applies to an inmate discharged or released on parole or mandatory supervision from the Texas Department of Criminal Justice on or after the effective date of this Act, regardless of whether the offense for which the inmate is serving a sentence was committed before, on, or after the effective date of this Act.

SECTIONi56.iiSections 495.025 and 495.026, Government Code, as added by this Act, apply only to a contract that the Texas Department of Criminal Justice enters into on or after the effective date of this Act. A contract that the department enters into before the effective date of this Act is governed by the law in effect at the time the contract is entered into, and that law is continued in effect for that purpose.

SECTIONi57.iiNot later than March 1, 2008, the Texas Department of Criminal Justice shall establish the screening programs concerning fetal alcohol exposure under Sections 501.059 and 507.028, Government Code, as added by this Act. Not later than September 1, 2008, the department shall begin screening all inmates or defendants confined in state jail felony facilities as required by those sections.

SECTIONi58.iiThe Texas Department of Criminal Justice shall ensure that information is made available to inmates as required by Section 501.064, Government Code, as added by this Act, not later than March 1, 2008.

SECTIONi59.iiThe Correctional Managed Health Care Committee shall ensure that information is made available to the public as required by Section 501.155, Government Code, as added by this Act, not later than January 1, 2008.

Saturday, May 26, 2007 SENATE JOURNAL 5067


SECTIONi60.iiSection 508.033, Government Code, as amended by this Act, applies only to a person hired by the Board of Pardons and Paroles as a parole commissioner on or after the effective date of this Act. A person hired as a parole commissioner before the effective date of this Act is covered by the law in effect on the date the person was hired, and the former law is continued in effect for that purpose.

SECTIONi61.iiAs soon as practicable after the effective date of this Act, but not later than the 30th day after that date, the executive director of the Texas Department of Criminal Justice shall adopt a salary career ladder for parole officers as required by Section 508.1131, Government Code, as added by this Act. Beginning the first day of the month following the date on which the executive director adopts the salary career ladder, each parole officer to whom the schedule applies and who received an overall evaluation of at least satisfactory in the officer's most recent annual evaluation is entitled to a salary in an amount that meets or exceeds the amount specified in the schedule for the officer's classification and years of service with the department.

SECTIONi62.iiSubsection (b), Section 508.144, Government Code, as amended by this Act, applies only to a parole decision made on or after the effective date of this Act. A parole decision made before the effective date of this Act is covered by the law in effect on the date the decision was made, and the former law is continued in effect for that purpose.

SECTIONi63.iiNot later than September 1, 2008, the Board of Pardons and Paroles shall hold its first annual meeting to review the parole guidelines as required by Subsection (d), Section 508.144, Government Code, as added by this Act.

SECTIONi64.iiNot later than December 1, 2008, the Board of Pardons and Paroles shall submit its first annual report on the parole guidelines as required by Section 508.1445, Government Code, as added by this Act.

SECTIONi65.iiSubsection (c), Section 508.155, Government Code, as amended by this Act, applies to any person who is a releasee on or after the effective date of this Act and whose recommendation for release is approved under Section 508.1555, Government Code, as added by this Act, regardless of when the person was originally released to parole or mandatory supervision.

SECTIONi66.iiNot later than September 1, 2008, each parole officer shall complete the officer's first annual identification of releasees under the officer's supervision who are eligible for early release from supervision, as required by Section 508.1555, Government Code, as added by this Act.

SECTIONi67.iiIf before implementing any provision of this Act a state agency determines that a waiver or authorization from a federal agency is necessary for the implementation of that provision, the agency affected by the provision shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted.

SECTIONi68.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

The Conference Committee Report on SBi909 was filed with the Secretary of the Senate.

5068 80th Legislature — Regular Session 68th Day


CONFERENCE COMMITTEE REPORT ON

SENATE BILL 718

Senator Ogden submitted the following Conference Committee Report:

Austin, Texas

May 25, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi718 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

OGDEN GATTIS
ELTIFE R. COOK
NICHOLS HOPSON
SHAPLEIGH KOLKHORST
VAN ARSDALE
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to the route selection for the Trans-Texas Corridor.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTIONi1.iiSection 227.012, Transportation Code, is amended to read as follows:

Sec.i227.012.iiROUTE SELECTION. (a)iiThe commission shall consider the following criteria when selecting a route for a segment of the Trans-Texas Corridor:

(1)iicurrent and projected traffic patterns;

(2)iithe safety of motorists;

(3)iipotential risks to persons from spills or accidents of any kind;

(4)iienvironmental effects, including the effect on air quality;

(5)iicurrent and projected economic development;

(6)iithe current and projected need for additional transportation options; and

(7)iisystem connectivity.

(b)iiTo the extent possible, the commission shall select a route for a segment of the Trans-Texas Corridor that lies on the Texas Highway Trunk System.

(c)iiBefore the 11th day after making a determination under Subsection (b) that it is not possible to select a route for a segment of the Trans-Texas Corridor that lies on the Texas Highway Trunk System, the commission shall file a written report of that determination and the reasons supporting the determination with each member of the legislature.

Saturday, May 26, 2007 SENATE JOURNAL 5069


SECTIONi2.iiThis Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

The Conference Committee Report on SBi718 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 2237

Senator Shapiro submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi2237 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

SHAPIRO EISSLER
JANEK HOCHBERG
WEST PATRICK
KRUSEE
MILES
On the part of the Senate On the part of the House

The Conference Committee Report on HBi2237 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 1565

Senator Uresti submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi1565 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

5070 80th Legislature — Regular Session 68th Day


URESTI PUENTE
AVERITT CORTE
VANiDEiPUTTE FLORES
HEGAR GUILLEN
WENTWORTH LEIBOWITZ
On the part of the Senate On the part of the House

The Conference Committee Report on HBi1565 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 3

Senator Averitt submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi3 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

AVERITT CALLEGARI
ELTIFE HARTNETT
HEGAR LAUBENBERG
HINOJOSA
SHAPIRO
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to the development, management, and preservation of the water resources of the state; providing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. ENVIRONMENTAL FLOWS

SECTIONi1.01.iiThe heading to Section 5.506, Water Code, is amended to read as follows:

Sec.i5.506.iiEMERGENCY SUSPENSION OF PERMIT CONDITION RELATING TO, AND EMERGENCY AUTHORITY TO MAKE AVAILABLE WATER SET ASIDE FOR, BENEFICIAL INFLOWS TO AFFECTED BAYS AND ESTUARIES AND INSTREAM USES.

SECTIONi1.02.iiSection 5.506, Water Code, is amended by adding Subsection (a-1) and amending Subsections (b) and (c) to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 5071


(a-1)iiState water that is set aside by the commission to meet the needs for freshwater inflows to affected bays and estuaries and instream uses under Section 11.1471(a)(2) may be made available temporarily for other essential beneficial uses if the commission finds that an emergency exists that cannot practically be resolved in another way.

(b)iiThe commission must give written notice of the proposed action [suspension] to the Parks and Wildlife Department before the commission suspends a permit condition under Subsection (a) or makes water available temporarily under Subsection (a-1) [this section]. The commission shall give the Parks and Wildlife Department an opportunity to submit comments on the proposed action [suspension] for a period of 72 hours from receipt of the notice and must consider those comments before issuing an order implementing the proposed action [imposing the suspension].

(c)iiThe commission may suspend a permit condition under Subsection (a) or make water available temporarily under Subsection (a-1) [this section] without notice except as required by Subsection (b).

SECTIONi1.03.iiSubsection (j), Section 5.701, Water Code, is amended to read as follows:

(j)iiThe fee for other uses of water not specifically named in this section is $1 per acre-foot, except that no political subdivision may be required to pay fees to use water for recharge of underground freshwater-bearing sands and aquifers or for abatement of natural pollution. A fee is not required for a water right that is [This fee is waived for applications for instream-use water rights] deposited into the Texas Water Trust.

SECTIONi1.04.iiSection 11.002, Water Code, is amended by adding Subdivisions (15), (16), (17), (18), and (19) to read as follows:

(15)ii"Environmental flow analysis" means the application of a scientifically derived process for predicting the response of an ecosystem to changes in instream flows or freshwater inflows.

(16)ii"Environmental flow regime" means a schedule of flow quantities that reflects seasonal and yearly fluctuations that typically would vary geographically, by specific location in a watershed, and that are shown to be adequate to support a sound ecological environment and to maintain the productivity, extent, and persistence of key aquatic habitats in and along the affected water bodies.

(17)ii"Environmental flow standards" means those requirements adopted by the commission under Section 11.1471.

(18)ii"Advisory group" means the environmental flows advisory group.

(19)ii"Science advisory committee" means the Texas environmental flows science advisory committee.

SECTIONi1.05.iiSubsection (a), Section 11.023, Water Code, is amended to read as follows:

(a)iiTo the extent that state water has not been set aside by the commission under Section 11.1471(a)(2) to meet downstream instream flow needs or freshwater inflow needs, state [State] water may be appropriated, stored, or diverted for:

(1)iidomestic and municipal uses, including water for sustaining human life and the life of domestic animals;

5072 80th Legislature — Regular Session 68th Day


(2)iiagricultural uses and industrial uses, meaning processes designed to convert materials of a lower order of value into forms having greater usability and commercial value, including the development of power by means other than hydroelectric;

(3)iimining and recovery of minerals;

(4)iihydroelectric power;

(5)iinavigation;

(6)iirecreation and pleasure;

(7)iipublic parks; and

(8)iigame preserves.

SECTIONi1.06.iiSection 11.0235, Water Code, is amended by amending Subsections (b), (c), and (e) and adding Subsections (d-1) through (d-6) and (f) to read as follows:

(b)iiMaintaining the biological soundness of the state's rivers, lakes, bays, and estuaries is of great importance to the public's economic health and general well-being. The legislature encourages voluntary water and land stewardship to benefit the water in the state, as defined by Section 26.001.

(c)iiThe legislature has expressly required the commission while balancing all other public interests to consider and, to the extent practicable, provide for the freshwater inflows and instream flows necessary to maintain the viability of the state's streams, rivers, and bay and estuary systems in the commission's regular granting of permits for the use of state waters. As an essential part of the state's environmental flows policy, all permit conditions relating to freshwater inflows to affected bays and estuaries and instream flow needs must be subject to temporary suspension if necessary for water to be applied to essential beneficial uses during emergencies.

(d-1)iiThe legislature has determined that existing water rights that are amended to authorize use for environmental purposes should be enforced in a manner consistent with the enforcement of water rights for other purposes as provided by the laws of this state governing the appropriation of state water.

(d-2)iiThe legislature finds that to provide certainty in water management and development and to provide adequate protection of the state's streams, rivers, and bays and estuaries, the state must have a process with specific timelines for prompt action to address environmental flow issues in the state's major basin and bay systems, especially those systems in which unappropriated water is still available.

(d-3)iiThe legislature finds that:

(1)iiin those basins in which water is available for appropriation, the commission should establish an environmental set-aside below which water should not be available for appropriation; and

(2)iiin those basins in which the unappropriated water that will be set aside for instream flow and freshwater inflow protection is not sufficient to fully satisfy the environmental flow standards established by the commission, a variety of market approaches, both public and private, for filling the gap must be explored and pursued.

(d-4)iiThe legislature finds that while the state has pioneered tools to address freshwater inflow needs for bays and estuaries, there are limitations to those tools in light of both scientific and public policy evolution. To fully address bay and estuary environmental flow issues, the foundation of work accomplished by the state should

Saturday, May 26, 2007 SENATE JOURNAL 5073


be improved. While the state's instream flow studies program appears to encompass a comprehensive and scientific approach for establishing a process to assess instream flow needs for rivers and streams across the state, more extensive review and examination of the details of the program, which may not be fully developed until the program is under way, are needed to ensure an effective tool for evaluating riverine environmental flow conditions.

(d-5)iiThe legislature finds that the management of water to meet instream flow and freshwater inflow needs should be evaluated on a regular basis and adapted to reflect both improvements in science related to environmental flows and future changes in projected human needs for water. In addition, the development of management strategies for addressing environmental flow needs should be an ongoing, adaptive process that considers and addresses local issues.

(d-6)iiThe legislature finds that recommendations for state action to protect instream flows and freshwater inflows should be developed through a consensus-based, regional approach involving balanced representation of stakeholders and that such a process should be encouraged throughout the state.

(e)iiThe fact that greater pressures and demands are being placed on the water resources of the state makes it of paramount importance to ensure [reexamine the process for ensuring] that these important priorities are effectively addressed by detailing how environmental flow standards are to be developed using the environmental studies that have been and are to be performed by the state and others and specifying in clear delegations of authority how those environmental flow standards will be integrated into the regional water planning and water permitting process [to the commission].

(f)iiThe legislature recognizes that effective implementation of the approach provided by this chapter for protecting instream flows and freshwater inflows will require more effective water rights administration and enforcement systems than are currently available in most areas of the state.

SECTIONi1.07.iiSubchapter B, Chapter 11, Water Code, is amended by adding Sections 11.0236, 11.02361, 11.02362, and 11.0237 to read as follows:

Sec.i11.0236.iiENVIRONMENTAL FLOWS ADVISORY GROUP. (a)iiIn recognition of the importance that the ecological soundness of our riverine, bay, and estuary systems and riparian lands has on the economy, health, and well-being of the state there is created the environmental flows advisory group.

(b)iiThe advisory group is composed of nine members as follows:

(1)iithree members appointed by the governor;

(2)iithree members of the senate appointed by the lieutenant governor; and

(3)iithree members of the house of representatives appointed by the speaker of the house of representatives.

(c)iiOf the members appointed under Subsection (b)(1):

(1)iione member must be a member of the commission;

(2)iione member must be a member of the board; and

(3)iione member must be a member of the Parks and Wildlife Commission.

(d)iiEach member of the advisory group serves at the will of the person who appointed the member.

5074 80th Legislature — Regular Session 68th Day


(e)iiThe appointed senator with the most seniority and the appointed house member with the most seniority serve together as co-presiding officers of the advisory group.

(f)iiA member of the advisory group is not entitled to receive compensation for service on the advisory group but is entitled to reimbursement of the travel expenses incurred by the member while conducting the business of the advisory group, as provided by the General Appropriations Act.

(g)iiThe advisory group may accept gifts and grants from any source to be used to carry out a function of the advisory group.

(h)iiThe commission shall provide staff support for the advisory group.

(i)iiThe advisory group shall conduct public hearings and study public policy implications for balancing the demands on the water resources of the state resulting from a growing population with the requirements of the riverine, bay, and estuary systems including granting permits for instream flows dedicated to environmental needs or bay and estuary inflows, use of the Texas Water Trust, and any other issues that the advisory group determines have importance and relevance to the protection of environmental flows. In evaluating the options for providing adequate environmental flows, the advisory group shall take notice of the strong public policy imperative that exists in this state recognizing that environmental flows are important to the biological health of our public and private lands, streams and rivers, and bay and estuary systems and are high priorities in the water management process. The advisory group shall specifically address:

(1)iiways that the ecological soundness of those systems will be ensured in the water rights administration and enforcement and water allocation processes; and

(2)iiappropriate methods to encourage persons voluntarily to convert reasonable amounts of existing water rights to use for environmental flow protection temporarily or permanently.

(j)iiThe advisory group may adopt rules, procedures, and policies as needed to administer this section, to implement its responsibilities, and to exercise its authority under Sections 11.02361 and 11.02362.

(k)iiChapter 2110, Government Code, does not apply to the size, composition, or duration of the advisory group.

(l)iiNot later than December 1, 2008, and every two years thereafter, the advisory group shall issue and promptly deliver to the governor, lieutenant governor, and speaker of the house of representatives copies of a report summarizing:

(1)iiany hearings conducted by the advisory group;

(2)iiany studies conducted by the advisory group;

(3)iiany legislation proposed by the advisory group;

(4)iiprogress made in implementing Sections 11.02361 and 11.02362; and

(5)iiany other findings and recommendations of the advisory group.

(m)iiThe advisory group is abolished on the date that the commission has adopted environmental flow standards under Section 11.1471 for all of the river basin and bay systems in this state.

Saturday, May 26, 2007 SENATE JOURNAL 5075


Sec.i11.02361.iiTEXAS ENVIRONMENTAL FLOWS SCIENCE ADVISORY COMMITTEE. (a)iiThe Texas environmental flows science advisory committee consists of at least five but not more than nine members appointed by the advisory group.

(b)iiThe advisory group shall appoint to the science advisory committee persons who will provide an objective perspective and diverse technical expertise, including expertise in hydrology, hydraulics, water resources, aquatic and terrestrial biology, geomorphology, geology, water quality, computer modeling, and other technical areas pertinent to the evaluation of environmental flows.

(c)iiMembers of the science advisory committee serve five-year terms expiring March 1. A vacancy on the science advisory committee is filled by appointment by the co-presiding officers of the advisory group for the unexpired term.

(d)iiChapter 2110, Government Code, does not apply to the size, composition, or duration of the science advisory committee.

(e)iiThe science advisory committee shall:

(1)iiserve as an objective scientific body to advise and make recommendations to the advisory group on issues relating to the science of environmental flow protection; and

(2)iidevelop recommendations to help provide overall direction, coordination, and consistency relating to:

(A)iienvironmental flow methodologies for bay and estuary studies and instream flow studies;

(B)iienvironmental flow programs at the commission, the Parks and Wildlife Department, and the board; and

(C)iithe work of the basin and bay expert science teams described in Section 11.02362.

(f)iiTo assist the advisory group to assess the extent to which the recommendations of the science advisory committee are considered and implemented, the commission, the Parks and Wildlife Department, and the board shall provide written reports to the advisory group, at intervals determined by the advisory group, that describe:

(1)iithe actions taken by each agency in response to each recommendation; and

(2)iifor each recommendation not implemented, the reason it was not implemented.

(g)iiThe science advisory committee is abolished on the date the advisory group is abolished under Section 11.0236(m).

Sec.i11.02362.iiDEVELOPMENT OF ENVIRONMENTAL FLOW REGIME RECOMMENDATIONS. (a)iiFor the purposes of this section, the advisory group, not later than November 1, 2007, shall define the geographical extent of each river basin and bay system in this state for the sole purpose of developing environmental flow regime recommendations under this section and adoption of environmental flow standards under Section 11.1471.

(b)iiThe advisory group shall give priority in descending order to the following river basin and bay systems of the state for the purpose of developing environmental flow regime recommendations and adopting environmental flow standards:

5076 80th Legislature — Regular Session 68th Day


(1)iithe river basin and bay system consisting of the Trinity and San Jacinto Rivers and Galveston Bay and the river basin and bay system consisting of the Sabine and Neches Rivers and Sabine Lake Bay;

(2)iithe river basin and bay system consisting of the Colorado and Lavaca Rivers and Matagorda and Lavaca Bays and the river basin and bay system consisting of the Guadalupe, San Antonio, Mission, and Aransas Rivers and Mission, Copano, Aransas, and San Antonio Bays; and

(3)iithe river basin and bay system consisting of the Nueces River and Corpus Christi and Baffin Bays, the river basin and bay system consisting of the Rio Grande, the Rio Grande estuary, and the Lower Laguna Madre, and the Brazos River and its associated bay and estuary system.

(c)iiFor the river basin and bay systems listed in Subsection (b)(1):

(1)iithe advisory group shall appoint the basin and bay area stakeholders committee not later than November 1, 2007;

(2)iithe basin and bay area stakeholders committee shall establish a basin and bay expert science team not later than March 1, 2008;

(3)iithe basin and bay expert science team shall finalize environmental flow regime recommendations and submit them to the basin and bay area stakeholders committee, the advisory group, and the commission not later than March 1, 2009, except that at the request of the basin and bay area stakeholders committee for good cause shown, the advisory group may extend the deadline provided by this subdivision;

(4)iithe basin and bay area stakeholders committee shall submit to the commission its comments on and recommendations regarding the basin and bay expert science team's recommended environmental flow regime not later than September 1, 2009; and

(5)iithe commission shall adopt the environmental flow standards as provided by Section 11.1471 not later than September 1, 2010.

(d)iiThe advisory group shall appoint the basin and bay area stakeholders committees for the river basin and bay systems listed in Subsection (b)(2) not later than September 1, 2008, and shall appoint the basin and bay area stakeholders committees for the river basin and bay systems listed in Subsection (b)(3) not later than September 1, 2009. The advisory group shall establish a schedule for the performance of the tasks listed in Subsections (c)(2) through (5) with regard to the river basin and bay systems listed in Subsections (b)(2) and (3) that will result in the adoption of environmental flow standards for that river basin and bay system by the commission as soon as is reasonably possible. Each basin and bay area stakeholders committee and basin and bay expert science team for a river basin and bay system listed in Subsection (b)(2) or (3) shall make recommendations to the advisory group with regard to the schedule applicable to that river basin and bay system. The advisory group shall consider the recommendations of the basin and bay area stakeholders committee and basin and bay expert science team as well as coordinate with, and give appropriate consideration to the recommendations of, the commission, the Parks and Wildlife Department, and the board in establishing the schedule.

Saturday, May 26, 2007 SENATE JOURNAL 5077


(e)iiFor a river basin and bay system or a river basin that does not have an associated bay system in this state not listed in Subsection (b), the advisory group shall establish a schedule for the development of environmental flow regime recommendations and the adoption of environmental flow standards. The advisory group shall develop the schedule in consultation with the commission, the Parks and Wildlife Department, the board, and the pertinent basin and bay area stakeholders committee and basin and bay expert science team. The advisory group may, on its own initiative or on request, modify a schedule established under this subsection to be more responsive to particular circumstances, local desires, changing conditions, or time-sensitive conflicts. This subsection does not prohibit, in a river basin and bay system for which the advisory group has not yet established a schedule for the development of environmental flow regime recommendations and the adoption of environmental flow standards, an effort to develop information on environmental flow needs and ways in which those needs can be met by a voluntary consensus-building process.

(f)iiThe advisory group shall appoint a basin and bay area stakeholders committee for each river basin and bay system in this state for which a schedule for the development of environmental flow regime recommendations and the adoption of environmental flow standards is specified by or established under Subsection (c), (d), or (e). Chapter 2110, Government Code, does not apply to the size, composition, or duration of a basin and bay area stakeholders committee. Each committee must consist of at least 17 members. The membership of each committee must:

(1)iireflect a fair and equitable balance of interest groups concerned with the particular river basin and bay system for which the committee is established; and

(2)iibe representative of appropriate stakeholders, including the following if they have a presence in the particular river basin and bay system for which the committee is established:

(A)iiagricultural water users, including representatives of each of the following sectors:

(i)iiagricultural irrigation;

(ii)iifree-range livestock; and

(iii)iiconcentrated animal feeding operation;

(B)iirecreational water users, including coastal recreational anglers and businesses supporting water recreation;

(C)iimunicipalities;

(D)iisoil and water conservation districts;

(E)iiindustrial water users, including representatives of each of the following sectors:

(i)iirefining;

(ii)iichemical manufacturing;

(iii)iielectricity generation; and

(iv)iiproduction of paper products or timber;

(F)iicommercial fishermen;

(G)iipublic interest groups;

(H)iiregional water planning groups;

(I)iigroundwater conservation districts;

5078 80th Legislature — Regular Session 68th Day


(J)iiriver authorities and other conservation and reclamation districts with jurisdiction over surface water; and

(K)iienvironmental interests.

(g)iiMembers of a basin and bay area stakeholders committee serve five-year terms expiring March 1. If a vacancy occurs on a committee, the remaining members of the committee by majority vote shall appoint a member to serve the remainder of the unexpired term.

(h)iiMeetings of a basin and bay area stakeholders committee must be open to the public.

(i)iiEach basin and bay area stakeholders committee shall establish a basin and bay expert science team for the river basin and bay system for which the committee is established. The basin and bay expert science team must be established not later than six months after the date the basin and bay area stakeholders committee is established. Chapter 2110, Government Code, does not apply to the size, composition, or duration of a basin and bay expert science team. Each basin and bay expert science team must be composed of technical experts with special expertise regarding the river basin and bay system or regarding the development of environmental flow regimes. A person may serve as a member of more than one basin and bay expert science team at the same time.

(j)iiThe members of a basin and bay expert science team serve five-year terms expiring April 1. A vacancy on a basin and bay expert science team is filled by appointment by the pertinent basin and bay area stakeholders committee to serve the remainder of the unexpired term.

(k)iiThe science advisory committee shall appoint one of its members to serve as a liaison to each basin and bay expert science team to facilitate coordination and consistency in environmental flow activities throughout the state. The commission, the Parks and Wildlife Department, and the board shall provide technical assistance to each basin and bay expert science team, including information about the studies conducted under Sections 16.058 and 16.059, and may serve as nonvoting members of the basin and bay expert science team to facilitate the development of environmental flow regime recommendations.

(l)iiWhere reasonably practicable, meetings of a basin and bay expert science team must be open to the public.

(m)iiEach basin and bay expert science team shall develop environmental flow analyses and a recommended environmental flow regime for the river basin and bay system for which the team is established through a collaborative process designed to achieve a consensus. In developing the analyses and recommendations, the science team must consider all reasonably available science, without regard to the need for the water for other uses, and the science team's recommendations must be based solely on the best science available. For the Rio Grande below Fort Quitman, any uses attributable to Mexican water flows must be excluded from environmental flow regime recommendations.

(n)iiEach basin and bay expert science team shall submit its environmental flow analyses and environmental flow regime recommendations to the pertinent basin and bay area stakeholders committee, the advisory group, and the commission in accordance with the applicable schedule specified by or established under Subsection

Saturday, May 26, 2007 SENATE JOURNAL 5079


(c), (d), or (e). The basin and bay area stakeholders committee and the advisory group may not change the environmental flow analyses or environmental flow regime recommendations of the basin and bay expert science team.

(o)iiEach basin and bay area stakeholders committee shall review the environmental flow analyses and environmental flow regime recommendations submitted by the committee's basin and bay expert science team and shall consider them in conjunction with other factors, including the present and future needs for water for other uses related to water supply planning in the pertinent river basin and bay system. For the Rio Grande, the basin and bay area stakeholders committee shall also consider the water accounting requirements for any international water sharing treaty, minutes, and agreement applicable to the Rio Grande and the effects on allocation of water by the Rio Grande watermaster in the middle and lower Rio Grande. The Rio Grande basin and bay expert science team may not recommend any environmental flow regime that would result in a violation of a treaty or court decision. The basin and bay area stakeholders committee shall develop recommendations regarding environmental flow standards and strategies to meet the environmental flow standards and submit those recommendations to the commission and to the advisory group in accordance with the applicable schedule specified by or established under Subsection (c), (d), or (e). In developing its recommendations, the basin and bay area stakeholders committee shall operate on a consensus basis to the maximum extent possible.

(p)iiIn recognition of the importance of adaptive management, after submitting its recommendations regarding environmental flow standards and strategies to meet the environmental flow standards to the commission, each basin and bay area stakeholders committee, with the assistance of the pertinent basin and bay expert science team, shall prepare and submit for approval by the advisory group a work plan. The work plan must:

(1)iiestablish a periodic review of the basin and bay environmental flow analyses and environmental flow regime recommendations, environmental flow standards, and strategies, to occur at least once every 10 years;

(2)iiprescribe specific monitoring, studies, and activities; and

(3)iiestablish a schedule for continuing the validation or refinement of the basin and bay environmental flow analyses and environmental flow regime recommendations, the environmental flow standards adopted by the commission, and the strategies to achieve those standards.

(q)iiIn accordance with the applicable schedule specified by or established under Subsection (c), (d), or (e), the advisory group, with input from the science advisory committee, shall review the environmental flow analyses and environmental flow regime recommendations submitted by each basin and bay expert science team. If appropriate, the advisory group shall submit comments on the analyses and recommendations to the commission for use by the commission in adopting rules under Section 11.1471. Comments must be submitted not later than six months after the date of receipt of the analyses and recommendations.

(r)iiNotwithstanding the other provisions of this section, in the event the commission, by permit or order, has established an estuary advisory council with specific duties related to implementation of permit conditions for environmental

5080 80th Legislature — Regular Session 68th Day


flows, that council may continue in full force and effect and shall act as and perform the duties of the basin and bay area stakeholders committee under this section. The estuary advisory council shall add members from stakeholder groups and from appropriate science and technical groups, if necessary, to fully meet the criteria for membership established in Subsection (f) and shall operate under the provisions of this section.

(s)iiEach basin and bay area stakeholders committee and basin and bay expert science team is abolished on the date the advisory group is abolished under Section 11.0236(m).

Sec.i11.0237.iiWATER RIGHTS FOR INSTREAM FLOWS DEDICATED TO ENVIRONMENTAL NEEDS OR BAY AND ESTUARY INFLOWS. (a)iiThe commission may not issue a new permit for instream flows dedicated to environmental needs or bay and estuary inflows. The commission may approve an application to amend an existing permit or certificate of adjudication to change the use to or add a use for instream flows dedicated to environmental needs or bay and estuary inflows.

(b)iiThis section does not alter the commission's obligations under Section 11.042(b) or (c), 11.046(b), 11.085(k)(2)(F), 11.134(b)(3)(D), 11.147, 11.1471, 11.1491, 11.150, 11.152, 16.058, or 16.059.

SECTIONi1.08.iiSubsection (b), Section 11.082, Water Code, is amended to read as follows:

(b)iiThe state may recover the penalties prescribed in Subsection (a) [of this section] by suit brought for that purpose in a court of competent jurisdiction. The state may seek those penalties regardless of whether a watermaster has been appointed for the water division, river basin, or segment of a river basin where the unlawful use is alleged to have occurred.

SECTIONi1.09.iiSection 11.0841, Water Code, is amended by adding Subsection (c) to read as follows:

(c)iiFor purposes of this section, the Parks and Wildlife Department has:

(1)iithe rights of a holder of a water right that is held in the Texas Water Trust, including the right to file suit in a civil court to prevent the unlawful use of such a right;

(2)iithe right to act in the same manner that a holder of a water right may act to protect the holder's rights in seeking to prevent any person from appropriating water in violation of a set-aside established by the commission under Section 11.1471 to meet instream flow needs or freshwater inflow needs; and

(3)iithe right to file suit in a civil court to prevent the unlawful use of a set-aside established under Section 11.1471.

SECTIONi1.10.iiSubsection (a), Section 11.0842, Water Code, is amended to read as follows:

(a)iiIf a person violates this chapter, a rule or order adopted under this chapter or Section 16.236 [of this code], or a permit, certified filing, or certificate of adjudication issued under this chapter, the commission may assess an administrative penalty against that person as provided by this section. The commission may assess an

Saturday, May 26, 2007 SENATE JOURNAL 5081


administrative penalty for a violation relating to a water division or a river basin or segment of a river basin regardless of whether a watermaster has been appointed for the water division or river basin or segment of the river basin.

SECTIONi1.11.iiSubsection (a), Section 11.0843, Water Code, is amended to read as follows:

(a)iiUpon witnessing a violation of this chapter or a rule or order or a water right issued under this chapter, the executive director or a person designated by the executive director, including a watermaster or the watermaster's deputy, [as defined by commission rule,] may issue the alleged violator a field citation alleging that a violation has occurred and providing the alleged violator the option of either:

(1)iiwithout admitting to or denying the alleged violation, paying an administrative penalty in accordance with the predetermined penalty amount established under Subsection (b) [of this section] and taking remedial action as provided in the citation; or

(2)iirequesting a hearing on the alleged violation in accordance with Section 11.0842 [of this code].

SECTIONi1.12.iiSubsection (b), Section 11.134, Water Code, is amended to read as follows:

(b)iiThe commission shall grant the application only if:

(1)iithe application conforms to the requirements prescribed by this chapter and is accompanied by the prescribed fee;

(2)iiunappropriated water is available in the source of supply;

(3)iithe proposed appropriation:

(A)iiis intended for a beneficial use;

(B)iidoes not impair existing water rights or vested riparian rights;

(C)iiis not detrimental to the public welfare;

(D)iiconsiders any applicable environmental flow standards established under Section 11.1471 and, if applicable, the assessments performed under Sections 11.147(d) and (e) and Sections 11.150, 11.151, and 11.152; and

(E)iiaddresses a water supply need in a manner that is consistent with the state water plan and the relevant approved regional water plan for any area in which the proposed appropriation is located, unless the commission determines that conditions warrant waiver of this requirement; and

(4)iithe applicant has provided evidence that reasonable diligence will be used to avoid waste and achieve water conservation as defined by [Subdivision (8)(B),] Section 11.002(8)(B) [11.002].

SECTIONi1.13.iiSection 11.147, Water Code, is amended by amending Subsections (b), (d), and (e) and adding Subsections (e-1), (e-2), and (e-3) to read as follows:

(b)iiIn its consideration of an application for a permit to store, take, or divert water, the commission shall assess the effects, if any, of the issuance of the permit on the bays and estuaries of Texas. For permits issued within an area that is 200 river miles of the coast, to commence from the mouth of the river thence inland, the commission shall include in the permit any conditions considered necessary to maintain beneficial inflows to any affected bay and estuary system, to the extent

5082 80th Legislature — Regular Session 68th Day


practicable when considering all public interests and the studies mandated by Section 16.058 as evaluated under Section 11.1491[, those conditions considered necessary to maintain beneficial inflows to any affected bay and estuary system].

(d)iiIn its consideration of an application to store, take, or divert water, the commission shall include in the permit, to the extent practicable when considering all public interests, those conditions considered by the commission necessary to maintain existing instream uses and water quality of the stream or river to which the application applies. In determining what conditions to include in the permit under this subsection, the commission shall consider among other factors:

(1)iithe studies mandated by Section 16.059; and

(2)iiany water quality assessment performed under Section 11.150.

(e)iiThe commission shall include in the permit, to the extent practicable when considering all public interests, those conditions considered by the commission necessary to maintain fish and wildlife habitats. In determining what conditions to include in the permit under this subsection, the commission shall consider any assessment performed under Section 11.152.

(e-1)iiAny permit for a new appropriation of water or an amendment to an existing water right that increases the amount of water authorized to be stored, taken, or diverted must include a provision allowing the commission to adjust the conditions included in the permit or amended water right to provide for protection of instream flows or freshwater inflows. With respect to an amended water right, the provision may not allow the commission to adjust a condition of the amendment other than a condition that applies only to the increase in the amount of water to be stored, taken, or diverted authorized by the amendment. This subsection does not affect an appropriation of or an authorization to store, take, or divert water under a permit or amendment to a water right issued before September 1, 2007. The commission shall adjust the conditions if the commission determines, through an expedited public comment process, that such an adjustment is appropriate to achieve compliance with applicable environmental flow standards adopted under Section 11.1471. The adjustment:

(1)iiin combination with any previous adjustments made under this subsection may not increase the amount of the pass-through or release requirement for the protection of instream flows or freshwater inflows by more than 12.5 percent of the annualized total of that requirement contained in the permit as issued or of that requirement contained in the amended water right and applicable only to the increase in the amount of water authorized to be stored, taken, or diverted under the amended water right;

(2)iimust be based on appropriate consideration of the priority dates and diversion locations of any other water rights granted in the same river basin that are subject to adjustment under this subsection; and

(3)iimust be based on appropriate consideration of any voluntary contributions to the Texas Water Trust, and of any voluntary amendments to existing water rights to change the use of a specified quantity of water to or add a use of a specified quantity of water for instream flows dedicated to environmental needs or bay and estuary inflows as authorized by Section 11.0237(a), that actually contribute toward meeting the applicable environmental flow standards.

Saturday, May 26, 2007 SENATE JOURNAL 5083


(e-2) Any water right holder who makes a contribution or amends a water right as described by Subsection (e-1)(3) is entitled to appropriate credit for the benefits of the contribution or amendment against the adjustment of the holder's water right under Subsection (e-1).

(e-3)iiNotwithstanding Subsections (b)-(e), for the purpose of determining the environmental flow conditions necessary to maintain freshwater inflows to an affected bay and estuary system, existing instream uses and water quality of a stream or river, or fish and aquatic wildlife habitats, the commission shall apply any applicable environmental flow standard, including any environmental flow set-aside, adopted under Section 11.1471 instead of considering the factors specified by those subsections.

SECTIONi1.14.iiSubchapter D, Chapter 11, Water Code, is amended by adding Section 11.1471 to read as follows:

Sec.i11.1471.iiENVIRONMENTAL FLOW STANDARDS AND SET-ASIDES. (a)iiThe commission by rule shall:

(1)iiadopt appropriate environmental flow standards for each river basin and bay system in this state that are adequate to support a sound ecological environment, to the maximum extent reasonable considering other public interests and other relevant factors;

(2)iiestablish an amount of unappropriated water, if available, to be set aside to satisfy the environmental flow standards to the maximum extent reasonable when considering human water needs; and

(3)iiestablish procedures for implementing an adjustment of the conditions included in a permit or an amended water right as provided by Sections 11.147(e-1) and (e-2).

(b)iiIn adopting environmental flow standards for a river basin and bay system under Subsection (a)(1), the commission shall consider:

(1)iithe definition of the geographical extent of the river basin and bay system adopted by the advisory group under Section 11.02362(a) and the definition and designation of the river basin by the board under Section 16.051(c);

(2)iithe schedule established by the advisory group under Section 11.02362(d) or (e) for the adoption of environmental flow standards for the river basin and bay system, if applicable;

(3)iithe environmental flow analyses and the recommended environmental flow regime developed by the applicable basin and bay expert science team under Section 11.02362(m);

(4)iithe recommendations developed by the applicable basin and bay area stakeholders committee under Section 11.02362(o) regarding environmental flow standards and strategies to meet the flow standards;

(5)iiany comments submitted by the advisory group to the commission under Section 11.02362(q);

(6)iithe specific characteristics of the river basin and bay system;

(7)iieconomic factors;

(8)iithe human and other competing water needs in the river basin and bay system;

5084 80th Legislature — Regular Session 68th Day


(9)iiall reasonably available scientific information, including any scientific information provided by the science advisory committee; and

(10)iiany other appropriate information.

(c)iiEnvironmental flow standards adopted under Subsection (a)(1) must consist of a schedule of flow quantities, reflecting seasonal and yearly fluctuations that may vary geographically by specific location in a river basin and bay system.

(d)iiAs provided by Section 11.023, the commission may not issue a permit for a new appropriation or an amendment to an existing water right that increases the amount of water authorized to be stored, taken, or diverted if the issuance of the permit or amendment would impair an environmental flow set-aside established under Subsection (a)(2). A permit for a new appropriation or an amendment to an existing water right that increases the amount of water authorized to be stored, taken, or diverted that is issued after the adoption of an applicable environmental flow set-aside must contain appropriate conditions to ensure protection of the environmental flow set-aside.

(e)iiAn environmental flow set-aside established under Subsection (a)(2) for a river basin and bay system other than the middle and lower Rio Grande must be assigned a priority date corresponding to the date the commission receives environmental flow regime recommendations from the applicable basin and bay expert science team and be included in the appropriate water availability models in connection with an application for a permit for a new appropriation or for an amendment to an existing water right that increases the amount of water authorized to be stored, taken, or diverted.

(f)iiAn environmental flow standard or environmental flow set-aside adopted under Subsection (a) may be altered by the commission in a rulemaking process undertaken in accordance with a schedule established by the commission. In establishing a schedule, the commission shall consider the applicable work plan approved by the advisory group under Section 11.02362(p). The commission's schedule may not provide for the rulemaking process to occur more frequently than once every 10 years unless the work plan provides for a periodic review under Section 11.02362(p) to occur more frequently than once every 10 years. In that event, the commission may provide for the rulemaking process to be undertaken in conjunction with the periodic review if the commission determines that schedule to be appropriate. A rulemaking process undertaken under this subsection must provide for the participation of stakeholders having interests in the particular river basin and bay system for which the process is undertaken.

SECTIONi1.15.iiThe heading to Section 11.148, Water Code, is amended to read as follows:

Sec.i11.148.iiEMERGENCY SUSPENSION OF PERMIT CONDITIONS AND EMERGENCY AUTHORITY TO MAKE AVAILABLE WATER SET ASIDE FOR ENVIRONMENTAL FLOWS.

SECTIONi1.16.iiSection 11.148, Water Code, is amended by adding Subsection (a-1) and amending Subsections (b) and (c) to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 5085


(a-1)iiState water that is set aside by the commission to meet the needs for freshwater inflows to affected bays and estuaries and instream uses under Section 11.1471(a)(2) may be made available temporarily for other essential beneficial uses if the commission finds that an emergency exists that cannot practically be resolved in another way.

(b)iiBefore the commission suspends a permit condition under Subsection (a) or makes water available temporarily under Subsection (a-1) [of this section], it must give written notice to the Parks and Wildlife Department of the proposed action [suspension]. The commission shall give the Parks and Wildlife Department an opportunity to submit comments on the proposed action [suspension] within 72 hours from such time and the commission shall consider those comments before issuing its order implementing the proposed action [imposing the suspension].

(c)iiThe commission may suspend the permit condition under Subsection (a) or make water available temporarily under Subsection (a-1) without notice to any other interested party other than the Parks and Wildlife Department as provided by Subsection (b) [of this section]. However, all affected persons shall be notified immediately by publication, and a hearing to determine whether the suspension should be continued shall be held within 15 days of the date on which the order to suspend is issued.

SECTIONi1.17.iiSubsection (a), Section 11.1491, Water Code, is amended to read as follows:

(a)iiThe Parks and Wildlife Department and the commission shall have joint responsibility to review the studies prepared under Section 16.058 [of this code], to determine inflow conditions necessary for the bays and estuaries, and to provide information necessary for water resources management. Each agency shall designate an employee to share equally in the oversight of the program. Other responsibilities shall be divided between the Parks and Wildlife Department and the commission to maximize present in-house capabilities of personnel and to minimize costs to the state. Each agency shall have reasonable access to all information produced by the other agency. Publication of reports completed under this section shall be submitted for comment to [both] the commission, [and] the Parks and Wildlife Department, the advisory group, the science advisory committee, and any applicable basin and bay area stakeholders committee and basin and bay expert science team.

SECTIONi1.18.iiSubsection (g), Section 11.329, Water Code, is amended to read as follows:

(g)iiThe commission may not assess costs under this section against a holder of a non-priority hydroelectric right that owns or operates privately owned facilities that collectively have a capacity of less than two megawatts or against a holder of a water right placed in the Texas Water Trust for a term of at least 20 years. [This subsection is not intended to affect in any way the fees assessed on a water right holder by the commission under Section 1.29(d), Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993. For purposes of Section 1.29(d), Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, a holder of a non-priority hydroelectric right that owns or operates privately owned facilities that collectively have a capacity of less

5086 80th Legislature — Regular Session 68th Day


than two megawatts shall be assessed fees at the same rate per acre-foot charged to a holder of a non-priority hydroelectric right that owns or operates privately owned facilities that collectively have a capacity of more than two megawatts.]

SECTIONi1.19.iiSubsection (e), Section 11.404, Water Code, is amended to read as follows:

(e)iiThe court may not assess costs and expenses under this section against:

(1)iia holder of a non-priority hydroelectric right that owns or operates privately owned facilities that collectively have a capacity of less than two megawatts; or

(2)iia holder of a water right placed in the Texas Water Trust for a term of at least 20 years.

SECTIONi1.20.iiSubchapter I, Chapter 11, Water Code, is amended by adding Section 11.4531 to read as follows:

Sec.i11.4531.iiWATERMASTER ADVISORY COMMITTEE. (a)iiFor each river basin or segment of a river basin for which the executive director appoints a watermaster under this subchapter, the executive director shall appoint a watermaster advisory committee consisting of at least nine but not more than 15 members. A member of the advisory committee must be a holder of a water right or a representative of a holder of a water right in the river basin or segment of the river basin for which the watermaster is appointed. In appointing members to the advisory committee, the executive director shall consider:

(1)iigeographic representation;

(2)iiamount of water rights held;

(3)iidifferent types of holders of water rights and users, including water districts, municipal suppliers, irrigators, and industrial users; and

(4)iiexperience and knowledge of water management practices.

(b)iiAn advisory committee member is not entitled to reimbursement of expenses or to compensation.

(c)iiAn advisory committee member serves a two-year term expiring August 31 of each odd-numbered year and holds office until a successor is appointed.

(d)iiThe advisory committee shall meet within 30 days after the date the initial appointments have been made and shall select a presiding officer to serve a one-year term. The committee shall meet regularly as necessary.

(e)iiThe advisory committee shall:

(1)iimake recommendations to the executive director regarding activities of benefit to the holders of water rights in the administration and distribution of water to holders of water rights in the river basin or segment of the river basin for which the watermaster is appointed;

(2)iireview and comment to the executive director on the annual budget of the watermaster operation; and

(3)iiperform other advisory duties as requested by the executive director regarding the watermaster operation or as requested by holders of water rights and considered by the committee to benefit the administration of water rights in the river basin or segment of the river basin for which the watermaster is appointed.

SECTIONi1.21.iiSections 11.454 and 11.455, Water Code, are amended to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 5087


Sec.i11.454.iiDUTIES AND AUTHORITY OF THE WATERMASTER. Section 11.327 applies to the duties and authority of a watermaster appointed for a river basin or segment of a river basin under this subchapter in the same manner as that section applies to the duties and authority of a watermaster appointed for a water division under Subchapter G [A watermaster as the agent of the commission and under the executive director's supervision shall:

[(1)iidivide the water of the streams or other sources of supply of his segment or basin in accordance with the authorized water rights;

[(2)iiregulate or cause to be regulated the controlling works of reservoirs and diversion works in time of water shortage, as is necessary because of the rights existing in the streams of his segment or basin, or as is necessary to prevent the waste of water or its diversion, taking, storage, or use in excess of the quantities to which the holders of water rights are lawfully entitled; and

[(3)iiperform any other duties and exercise any authority directed by the commission].

Sec.i11.455.iiCOMPENSATION AND EXPENSES OF WATERMASTER [ASSESSMENTS]. (a)iiSection 11.329 applies to the payment of the compensation and expenses of a watermaster appointed for a river basin or segment of a river basin under this subchapter in the same manner as that section applies to the payment of the compensation and expenses of a watermaster appointed for a water division under Subchapter G.

(b)iiThe executive director shall deposit the assessments collected under this section to the credit of the watermaster fund.

(c)iiMoney deposited under this section to the credit of the watermaster fund may be used only for the purposes specified by Section 11.3291 with regard to the watermaster operation under this subchapter with regard to which the assessments were collected [The commission may assess the costs of the watermaster against all persons who hold water rights in the river basin or segment of the river basin under the watermaster's jurisdiction in accordance with Section 11.329 of this code].

SECTIONi1.22.iiSubchapter F, Chapter 15, Water Code, is amended by adding Section 15.4063 to read as follows:

Sec.i15.4063.iiENVIRONMENTAL FLOWS FUNDING. The board may authorize the use of money in the research and planning fund:

(1)iito compensate the members of the Texas environmental flows science advisory committee established under Section 11.02361 for attendance and participation at meetings of the committee and for transportation, meals, lodging, or other travel expenses associated with attendance at those meetings as provided by the General Appropriations Act;

(2)iifor contracts with cooperating state and federal agencies and universities and with private entities as necessary to provide technical assistance to enable the Texas environmental flows science advisory committee and the basin and bay expert science teams established under Section 11.02362 to perform their statutory duties;

5088 80th Legislature — Regular Session 68th Day


(3)iito compensate the members of the basin and bay expert science teams established under Section 11.02362 for attendance and participation at meetings of the basin and bay expert science teams and for transportation, meals, lodging, or other travel expenses associated with attendance at those meetings as provided by the General Appropriations Act; and

(4)iifor contracts with political subdivisions designated as representatives of basin and bay area stakeholders committees established under Section 11.02362 to fund all or part of the administrative expenses incurred in conducting meetings of the basin and bay area stakeholders committees or the pertinent basin and bay expert science teams.

SECTIONi1.23.iiSubsection (d), Section 16.059, Water Code, is amended to read as follows:

(d)iiThe priority studies shall be completed not later than December 31, 2016 [2010]. The Parks and Wildlife Department, the commission, and the board shall establish a work plan that prioritizes the studies and that sets interim deadlines providing for publication of flow determinations for individual rivers and streams on a reasonably consistent basis throughout the prescribed study period. Before publication, completed studies shall be submitted for comment to the commission, the board, and the Parks and Wildlife Department.

SECTIONi1.24.iiSubsection (h), Section 26.0135, Water Code, as amended by Chapters 234 and 965, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows:

(h)iiThe commission shall apportion, assess, and recover the reasonable costs of administering the water quality management programs under this section from users of water and wastewater permit holders in the watershed according to the records of the commission generally in proportion to their right, through permit or contract, to use water from and discharge wastewater in the watershed. Irrigation water rights, [and] non-priority hydroelectric rights of a water right holder that owns or operates privately owned facilities that collectively have a capacity of less than two megawatts, and water rights held in the Texas Water Trust for terms of at least 20 years will not be subject to this assessment. The cost to river authorities and others to conduct water quality monitoring and assessment shall be subject to prior review and approval by the commission as to methods of allocation and total amount to be recovered. The commission shall adopt rules to supervise and implement the water quality monitoring, assessment, and associated costs. The rules shall ensure that water users and wastewater dischargers do not pay excessive amounts, that program funds are equitably apportioned among basins, that a river authority may recover no more than the actual costs of administering the water quality management programs called for in this section, and that no municipality shall be assessed cost for any efforts that duplicate water quality management activities described in Section 26.177 [of this chapter]. The rules concerning the apportionment and assessment of reasonable costs shall provide for a recovery of not more than $5,000,000 annually. Costs recovered by the commission are to be deposited to the credit of the water resource management account and may be used only to accomplish the purposes of this section. The commission may apply not more than 10 percent of the costs recovered annually toward the commission's overhead costs for the administration of this section and the

Saturday, May 26, 2007 SENATE JOURNAL 5089


implementation of regional water quality assessments. The commission, with the assistance and input of each river authority, shall file a written report accounting for the costs recovered under this section with the governor, the lieutenant governor, and the speaker of the house of representatives on or before December 1 of each even-numbered year.

SECTIONi1.25.iiSubsection (b), Section 11.1491, Water Code, is repealed.

SECTIONi1.26.ii(a)iiThe governor, lieutenant governor, and speaker of the house of representatives shall appoint the initial members of the environmental flows advisory group as provided by Section 11.0236, Water Code, as added by this article, as soon as practicable on or after the effective date of this Act.

(b)iiAs soon as practicable after taking office, the initial members of the environmental flows advisory group shall appoint the initial members of the Texas environmental flows science advisory committee as provided by Section 11.02361, Water Code, as added by this article. The terms of the initial members of the committee expire March 1, 2012.

(c)iiThe environmental flows advisory group shall appoint the members of each basin and bay area stakeholders committee as provided by Section 11.02362, Water Code, as added by this article. The terms of the initial members of each committee expire March 1 of the fifth year that begins after the year in which the initial appointments are made.

(d)iiEach basin and bay area stakeholders committee shall appoint the members of the basin and bay expert science team for the river basin and bay system for which the committee is established as provided by Section 11.02362, Water Code, as added by this article. The terms of the initial members of each team expire April 1 of the fifth year that begins after the year in which the initial appointments are made.

(e)iiThe executive director of the Texas Commission on Environmental Quality shall appoint the members of the watermaster advisory committee under Section 11.4531, Water Code, as added by this article, for each river basin or segment of a river basin for which the executive director appoints a watermaster under Subchapter I, Chapter 11, Water Code. The terms of the initial members of each committee expire August 31 of the first odd-numbered year that begins after the year in which the initial appointments are made.

SECTIONi1.27.iiThe changes in law made by this article relating to a permit for a new appropriation of water or to an amendment to an existing water right that increases the amount of water authorized to be stored, taken, or diverted apply only to:

(1)iiwater appropriated under a permit for a new appropriation of water the application for which is pending with the Texas Commission on Environmental Quality on the effective date of this Act or is filed with the commission on or after that date; or

(2)iithe increase in the amount of water authorized to be stored, taken, or diverted under an amendment to an existing water right that increases the amount of water authorized to be stored, taken, or diverted and the application for which is pending with the Texas Commission on Environmental Quality on the effective date of this Act or is filed with the commission on or after that date.

5090 80th Legislature — Regular Session 68th Day


ARTICLE 2. WATER CONSERVATION AND PLANNING AND OTHER WATER-RELATED PROVISIONS

SECTIONi2.01.iiSection 1.003, Water Code, is amended to read as follows:

Sec.i1.003.iiPUBLIC POLICY. It is the public policy of the state to provide for the conservation and development of the state's natural resources, including:

(1)iithe control, storage, preservation, and distribution of the state's storm and floodwaters and the waters of its rivers and streams for irrigation, power, and other useful purposes;

(2)iithe reclamation and irrigation of the state's arid, semiarid, and other land needing irrigation;

(3)iithe reclamation and drainage of the state's overflowed land and other land needing drainage;

(4)iithe conservation and development of its forest, water, and hydroelectric power;

(5)iithe navigation of the state's inland and coastal waters; [and]

(6)iithe maintenance of a proper ecological environment of the bays and estuaries of Texas and the health of related living marine resources; and

(7)iithe voluntary stewardship of public and private lands to benefit waters of the state.

SECTIONi2.02.iiSubchapter A, Chapter 1, Water Code, is amended by adding Section 1.004 to read as follows:

Sec.i1.004.iiFINDINGS AND POLICY REGARDING LAND STEWARDSHIP. (a)iiThe legislature finds that voluntary land stewardship enhances the efficiency and effectiveness of this state's watersheds by helping to increase surface water and groundwater supplies, resulting in a benefit to the natural resources of this state and to the general public. It is therefore the policy of this state to encourage voluntary land stewardship as a significant water management tool.

(b)ii"Land stewardship," as used in this code, is the voluntary practice of managing land to conserve or enhance suitable landscapes and the ecosystem values of the land. Land stewardship includes land and habitat management, wildlife conservation, and watershed protection. Land stewardship practices include runoff reduction, prescribed burning, managed grazing, brush management, erosion management, reseeding with native plant species, riparian management and restoration, and spring and creek-bank protection, all of which benefit the water resources of this state.

SECTIONi2.03.iiSubtitle A, Title 2, Water Code, is amended by adding Chapter 10 to read as follows:

CHAPTER 10. WATER CONSERVATION ADVISORY COUNCIL

Sec.i10.001.iiDEFINITIONS. In this chapter:

(1)ii"Best management practices" has the meaning assigned by Section 11.002.

(2)ii"Board" means the Texas Water Development Board.

(3)ii"Commission" means the Texas Commission on Environmental Quality.

(4)ii"Council" means the Water Conservation Advisory Council.

Saturday, May 26, 2007 SENATE JOURNAL 5091


Sec.i10.002.iiPURPOSE. The council is created to provide the governor, lieutenant governor, speaker of the house of representatives, legislature, board, commission, political subdivisions, and public with the resource of a select council with expertise in water conservation.

Sec.i10.003.iiCREATION AND MEMBERSHIP. (a)iiThe council is composed of 23 members appointed by the board. The board shall appoint one member to represent each of the following entities or interest groups:

(1)iiTexas Commission on Environmental Quality;

(2)iiDepartment of Agriculture;

(3)iiParks and Wildlife Department;

(4)iiState Soil and Water Conservation Board;

(5)iiTexas Water Development Board;

(6)iiregional water planning groups;

(7)iifederal agencies;

(8)iimunicipalities;

(9)iigroundwater conservation districts;

(10)iiriver authorities;

(11)iienvironmental groups;

(12)iiirrigation districts;

(13)iiinstitutional water users;

(14)iiprofessional organizations focused on water conservation;

(15)iihigher education;

(16)iiagricultural groups;

(17)iirefining and chemical manufacturing;

(18)iielectric generation;

(19)iimining and recovery of minerals;

(20)iilandscape irrigation and horticulture;

(21)iiwater control and improvement districts;

(22)iirural water users; and

(23)iimunicipal utility districts.

(b)iiEach entity or interest group described by Subsection (a) may recommend one or more persons to fill the position on the council held by the member who represents that entity or interest group. If one or more persons are recommended for a position on the council, the board shall appoint one of the persons recommended to fill the position.

Sec.i10.004.iiTERMS. (a)iiMembers of the council serve staggered terms of six years, with seven or eight members' terms, as applicable, expiring August 31 of each odd-numbered year.

(b)iiThe board shall fill a vacancy on the council for the unexpired term by appointing a person who has the same qualifications as required under Section 10.003 for the person who previously held the vacated position.

Sec.i10.005.iiPRESIDING OFFICER. The council members shall select one member as the presiding officer of the council to serve in that capacity until the person's term as a council member expires.

Sec.i10.006.iiCOUNCIL STAFF. On request by the council, the board shall provide any necessary staff to assist the council in the performance of its duties.

5092 80th Legislature — Regular Session 68th Day


Sec.i10.007.iiPUBLIC MEETINGS AND PUBLIC INFORMATION. (a)iiThe council may hold public meetings as needed to fulfill its duties under this chapter.

(b)iiThe council is subject to Chapters 551 and 552, Government Code.

Sec.i10.008.iiINAPPLICABILITY OF ADVISORY COMMITTEE LAW. Chapter 2110, Government Code, does not apply to the size, composition, or duration of the council.

Sec.i10.009.iiCOMPENSATION OF MEMBERS. (a)iiMembers of the council serve without compensation but may be reimbursed by legislative appropriation for actual and necessary expenses related to the performance of council duties.

(b)iiReimbursement under Subsection (a) is subject to the approval of the presiding officer of the council.

Sec.i10.010.iiPOWERS AND DUTIES OF COUNCIL. The council shall:

(1)iimonitor trends in water conservation implementation;

(2)iimonitor new technologies for possible inclusion by the board as best management practices in the best management practices guide developed by the water conservation implementation task force under Chapter 109, Acts of the 78th Legislature, Regular Session, 2003;

(3)iimonitor the effectiveness of the statewide water conservation public awareness program developed under Section 16.401 and associated local involvement in implementation of the program;

(4)iidevelop and implement a state water management resource library;

(5)iidevelop and implement a public recognition program for water conservation;

(6)iimonitor the implementation of water conservation strategies by water users included in regional water plans; and

(7)iimonitor target and goal guidelines for water conservation to be considered by the board and commission.

Sec.i10.011.iiREPORT. Not later than December 1 of each even-numbered year, the council shall submit to the governor, lieutenant governor, and speaker of the house of representatives a report on progress made in water conservation in this state.

Sec.i10.012.iiDESIGNATION OF CERTIFIED WATER CONSERVATION TRAINING FACILITIES STUDY. (a)iiThe council shall conduct a study to evaluate the desirability of requiring the board to:

(1)iidesignate as certified water conservation training facilities entities and programs that provide assistance to retail public utilities in developing water conservation plans under Section 13.146; and

(2)iigive preference to certified water conservation training facilities in making loans or grants for water conservation training and education activities.

(b)iiNot later than December 1, 2008, the council shall submit a written report containing the findings of the study and the recommendations of the council to the governor, lieutenant governor, and speaker of the house of representatives.

(c)iiThis section expires June 1, 2009.

SECTIONi2.04.iiSection 11.002, Water Code, is amended by adding Subdivision (20) to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 5093


(20)ii"Best management practices" means those voluntary efficiency measures developed by the commission and the board that save a quantifiable amount of water, either directly or indirectly, and that can be implemented within a specified time frame.

SECTIONi2.05.iiSubdivisions (1-a), (5), and (8), Section 13.002, Water Code, are amended to read as follows:

(1-a)ii"Landowner," "owner of a tract of land," and "owners of each tract of land" include multiple owners of a single deeded tract of land as shown on the appraisal roll of the appraisal district established for each county in which the property is located.

(5)ii"Commission" means the Texas [Natural Resource Conservation] Commission on Environmental Quality.

(8)ii"Executive director" means the executive director of the commission [Texas Natural Resource Conservation Commission].

SECTIONi2.06.iiSubchapter E, Chapter 13, Water Code, is amended by adding Sections 13.146 and 13.147 to read as follows:

Sec.i13.146.iiWATER CONSERVATION PLAN. The commission shall require a retail public utility that provides potable water service to 3,300 or more connections to submit to the executive administrator of the board a water conservation plan based on specific targets and goals developed by the retail public utility and using appropriate best management practices, as defined by Section 11.002, or other water conservation strategies.

Sec.i13.147.iiCONSOLIDATED BILLING AND COLLECTION CONTRACTS. (a)iiA retail public utility providing water service may contract with a retail public utility providing sewer service to bill and collect the sewer service provider's fees and payments as part of a consolidated process with the billing and collection of the water service provider's fees and payments. The water service provider may provide that service only for customers who are served by both providers in an area covered by both providers' certificates of public convenience and necessity. If the water service provider refuses to enter into a contract under this section or if the water service provider and sewer service provider cannot agree on the terms of a contract, the sewer service provider may petition the commission to issue an order requiring the water service provider to provide that service.

(b)iiA contract or order under this section must provide procedures and deadlines for submitting billing and customer information to the water service provider and for the delivery of collected fees and payments to the sewer service provider.

(c)iiA contract or order under this section may require or permit a water service provider that provides consolidated billing and collection of fees and payments to:

(1)iiterminate the water services of a person whose sewage services account is in arrears for nonpayment; and

(2)iicharge a customer a reconnection fee if the customer's water service is terminated for nonpayment of the customer's sewage services account.

(d)iiA water service provider that provides consolidated billing and collection of fees and payments may impose on each sewer service provider customer a reasonable fee to recover costs associated with providing consolidated billing and collection of fees and payments for sewage services.

5094 80th Legislature — Regular Session 68th Day


SECTIONi2.07.iiSubchapter F, Chapter 13, Water Code, is amended by adding Section 13.188 to read as follows:

Sec.i13.188.iiADJUSTMENT FOR CHANGE IN ENERGY COSTS. (a)iiNotwithstanding any other provision in this chapter, the commission by rule shall adopt a procedure allowing a utility to file with the commission an application to timely adjust the utility's rates to reflect an increase or decrease in documented energy costs in a pass through clause. The commission, by rule, shall require the pass through of documented decreases in energy costs within a reasonable time. The pass through, whether a decrease or increase, shall be implemented on no later than an annual basis, unless the commission determines a special circumstance applies.

(b)iiNotwithstanding any other provision to the contrary, this adjustment is an uncontested matter not subject to a contested case hearing. However, the executive director shall hold an uncontested public meeting:

(1)iion the request of a member of the legislature who represents the area served by the water and sewer utility; or

(2)iiif the executive director determines that there is substantial public interest in the matter.

(c)iiA proceeding under this section is not a rate case and Section 13.187 does not apply.

SECTIONi2.08.iiSection 13.2451, Water Code, is amended to read as follows:

Sec.i13.2451.iiEXTENSION BEYOND EXTRATERRITORIAL JURISDICTION. (a)iiIf [Except as provided by Subsection (b), if] a municipality extends its extraterritorial jurisdiction to include an area certificated to a retail public utility, the retail public utility may continue and extend service in its area of public convenience and necessity under the rights granted by its certificate and this chapter.

(b)iiA municipality that seeks to extend a certificate of public convenience and necessity beyond the municipality's extraterritorial jurisdiction must ensure that the municipality complies with Section 13.241 in relation to the area covered by the portion of the certificate that extends beyond the municipality's extraterritorial jurisdiction.

(c)iiThe commission, after notice to the municipality and an opportunity for a hearing, may decertify an area outside a municipality's extraterritorial jurisdiction if the municipality does not provide service to the area on or before the fifth anniversary of the date the certificate of public convenience and necessity was granted for the area. This subsection does not apply to a certificate of public convenience and necessity for an area:

(1)iithat was transferred to a municipality on approval of the commission; and

(2)iiin relation to which the municipality has spent public funds.

(d)iiTo the extent of a conflict between this section and Section 13.245, Section 13.245 prevails [The commission may not extend a municipality's certificate of public convenience and necessity beyond its extraterritorial jurisdiction without the written consent of the landowner who owns the property in which the certificate is to be extended. The portion of any certificate of public convenience and necessity that extends beyond the extraterritorial jurisdiction of the municipality without the consent of the landowner is void].

Saturday, May 26, 2007 SENATE JOURNAL 5095


SECTIONi2.09.iiSubsection (a-1), Section 13.246, Water Code, is amended to read as follows:

(a-1)iiExcept as otherwise provided by this subsection, in addition to the notice required by Subsection (a), the commission shall require notice to be mailed to each owner of a tract of land that is at least 25 [50] acres and is wholly or partially included in the area proposed to be certified. Notice required under this subsection must be mailed by first class mail to the owner of the tract according to the most current tax appraisal rolls of the applicable central appraisal district at the time the commission received the application for the certificate or amendment. Good faith efforts to comply with the requirements of this subsection shall be considered adequate notice to landowners. Notice under this subsection is not required for a matter filed with the commission under:

(1)iiSection 13.248 or 13.255; or

(2)iiChapter 65.

SECTIONi2.10.iiSubsection (b), Section 15.102, Water Code, is amended to read as follows:

(b)iiThe loan fund may also be used by the board to provide:

(1)iigrants or loans for projects that include supplying water and wastewater services in economically distressed areas or nonborder colonias as provided by legislative appropriations, this chapter, and board rules, including projects involving retail distribution of those services; and

(2)iigrants for:

(A)iiprojects for which federal grant funds are placed in the loan fund;

(B)iiprojects, on specific legislative appropriation for those projects; or

(C)iiwater conservation, desalination, brush control, weather modification, regionalization, and projects providing regional water quality enhancement services as defined by board rule, including regional conveyance systems.

SECTIONi2.11.iiSubchapter Q, Chapter 15, Water Code, is amended by adding Section 15.9751 to read as follows:

Sec.i15.9751.iiPRIORITY FOR WATER CONSERVATION. The board shall give priority to applications for funds for the implementation of water supply projects in the state water plan by entities that:

(1)iihave already demonstrated significant water conservation savings; or

(2)iiwill achieve significant water conservation savings by implementing the proposed project for which the financial assistance is sought.

SECTIONi2.12.iiSection 16.017, Water Code, is amended to read as follows:

Sec.i16.017.iiTOPOGRAPHIC AND GEOLOGIC MAPPING. (a)iiThe executive administrator shall carry out the program for topographic and geologic mapping of the state.

(b)iiThe executive administrator shall operate as part of the Texas Natural Resources Information System a strategic mapping program to acquire, store, and distribute digital, geospatial information.

SECTIONi2.13.iiSubchapter B, Chapter 16, Water Code, is amended by adding Sections 16.023 and 16.024 to read as follows:

5096 80th Legislature — Regular Session 68th Day


Sec.i16.023.iiSTRATEGIC MAPPING ACCOUNT. (a)iiThe strategic mapping account is an account in the general revenue fund. The account consists of:

(1)iimoney directly appropriated to the board;

(2)iimoney transferred by the board from other funds available to the board;

(3)iimoney from gifts or grants from the United States government, state, regional, or local governments, educational institutions, private sources, or other sources;

(4)iiproceeds from the sale of maps, data, publications, and other items; and

(5)iiinterest earned on the investment of money in the account and depository interest allocable to the account.

(b)iiThe account may be appropriated only to the board to:

(1)iidevelop, administer, and implement the strategic mapping program;

(2)iiprovide grants to political subdivisions for projects related to the development, use, and dissemination of digital, geospatial information; and

(3)iiadminister, implement, and operate other programs of the Texas Natural Resources Information System, including:

(A)iithe operation of a Texas-Mexico border region information center for the purpose of implementing Section 16.021 (e)(5);

(B)iithe acquisition, storage, and distribution of historical maps, photographs, and paper map products;

(C)iithe maintenance and enhancement of information technology; and

(D)iithe production, storage, and distribution of other digital base maps, as determined by the executive administrator or a state agency that is a member of the Texas Geographic Information Council.

(c)iiThe board may invest, reinvest, and direct the investment of any available money in the fund as provided by law for the investment of money under Section 404.024, Government Code.

Sec.i16.024.iiFINANCIAL ASSISTANCE FOR DIGITAL, GEOSPATIAL INFORMATION PROJECTS. (a)iiA political subdivision seeking a grant under Section 16.023 must file an application with the board.

(b)iiAn application must be filed in the manner and form required by board rules.

(c)iiIn reviewing an application by a political subdivision for a grant, the board shall consider:

(1)iithe degree to which the political subdivision has used other available resources to finance the development, use, and dissemination of digital, geospatial information;

(2)iithe willingness and ability of the political subdivision to develop, use, and disseminate digital, geospatial information; and

(3)iithe benefits that will be gained by making the grant.

(d)iiThe board may approve a grant to a political subdivision only if the board finds that:

(1)iithe grant will supplement rather than replace money of the political subdivision;

(2)iithe public interest is served by providing the grant; and

(3)iithe grant will further the state's ability to gather, develop, use, and disseminate digital, geospatial information.

Saturday, May 26, 2007 SENATE JOURNAL 5097


SECTIONi2.14.iiSubsection (h), Section 16.053, Water Code, is amended by adding Subdivisions (10) and (11) to read as follows:

(10)iiThe regional water planning group may amend the regional water plan after the plan has been approved by the board. Subdivisions (1)-(9) apply to an amendment to the plan in the same manner as those subdivisions apply to the plan.

(11)iiThis subdivision applies only to an amendment to a regional water plan approved by the board. This subdivision does not apply to the adoption of a subsequent regional water plan for submission to the board as required by Subsection (i). Notwithstanding Subdivision (10), the regional water planning group may amend the plan in the manner provided by this subdivision if the executive administrator makes a written determination that the proposed amendment qualifies for adoption in the manner provided by this subdivision before the regional water planning group votes on adoption of the amendment. A proposed amendment qualifies for adoption in the manner provided by this subdivision only if the amendment is a minor amendment, as defined by board rules, that will not result in the overallocation of any existing or planned source of water, does not relate to a new reservoir, and will not have a significant effect on instream flows or freshwater inflows to bays and estuaries. If the executive administrator determines that a proposed amendment qualifies for adoption in the manner provided by this subdivision, the regional water planning group may adopt the amendment at a public meeting held in accordance with Chapter 551, Government Code. The proposed amendment must be placed on the agenda for the meeting, and notice of the meeting must be given in the manner provided by Chapter 551, Government Code, at least two weeks before the date the meeting is held. The public must be provided an opportunity to comment on the proposed amendment at the meeting.

SECTIONi2.15.iiSubsection (r), Section 16.053, Water Code, as added by Chapter 1097, Acts of the 79th Legislature, Regular Session, 2005, is amended to read as follows:

(r)iiThe board by rule shall provide for reasonable flexibility to allow for a timely amendment of a regional water plan, the board's approval of an amended regional water plan, and the amendment of the state water plan. If an amendment under this subsection is[,] to facilitate planning for water supplies reasonably required for a clean coal project, as defined by Section 5.001, the[. The] rules may allow for amending a regional water plan without providing notice and without a public meeting or hearing under Subsection (h) if the amendment does not:

(1)iisignificantly change the regional water plan, as reasonably determined by the board; or

(2)iiadversely affect other water management strategies in the regional water plan.

SECTIONi2.16.iiSubchapter E, Chapter 16, Water Code, is amended by adding Section 16.1311 to read as follows:

Sec.i16.1311.iiPRIORITY FOR WATER CONSERVATION. The board shall give priority to applications for funds for implementation of water supply projects in the state water plan by entities that:

(1)iihave already demonstrated significant water conservation savings; or

5098 80th Legislature — Regular Session 68th Day


(2)iiwill achieve significant water conservation savings by implementing the proposed project for which the financial assistance is sought.

SECTIONi2.17.iiSections 16.315 and 16.319, Water Code, are amended to read as follows:

Sec.i16.315.iiPOLITICAL SUBDIVISIONS; COMPLIANCE WITH FEDERAL REQUIREMENTS. All political subdivisions are hereby authorized to take all necessary and reasonable actions that are not less stringent than [to comply with] the requirements and criteria of the National Flood Insurance Program, including but not limited to:

(1)iimaking appropriate land use adjustments to constrict the development of land which is exposed to flood damage and minimize damage caused by flood losses;

(2)iiguiding the development of proposed future construction, where practicable, away from a location which is threatened by flood hazards;

(3)iiassisting in minimizing damage caused by floods;

(4)iiauthorizing and engaging in continuing studies of flood hazards in order to facilitate a constant reappraisal of the flood insurance program and its effect on land use requirements;

(5)iiengaging in floodplain management, [and] adopting and enforcing permanent land use and control measures that are not less stringent than those [consistent with the criteria] established under the National Flood Insurance Act, and providing for the imposition of penalties on landowners who violate this subchapter or rules adopted or orders issued under this subchapter;

(6)iideclaring property, when such is the case, to be in violation of local laws, regulations, or ordinances which are intended to discourage or otherwise restrict land development or occupancy in flood-prone areas and notifying the director, or whomever the director designates, of such property;

(7)iiconsulting with, giving information to, and entering into agreements with the Federal Emergency Management Agency for the purpose of:

(A)iiidentifying and publishing information with respect to all flood areas, including coastal areas; and

(B)iiestablishing flood-risk zones in all such areas and making estimates with respect to the rates of probable flood-caused loss for the various flood-risk zones for each of these areas;

(8)iicooperating with the director's studies and investigations with respect to the adequacy of local measures in flood-prone areas as to land management and use, flood control, flood zoning, and flood damage prevention;

(9)iitaking steps, using regional, watershed, and multi-objective approaches, to improve the long-range management and use of flood-prone areas;

(10)iipurchasing, leasing, and receiving property from the director when such property is owned by the federal government and lies within the boundaries of the political subdivision pursuant to agreements with the Federal Emergency Management Agency or other appropriate legal representative of the United States Government;

(11)iirequesting aid pursuant to the entire authorization from the commission;

Saturday, May 26, 2007 SENATE JOURNAL 5099


(12)iisatisfying criteria adopted and promulgated by the commission pursuant to the National Flood Insurance Program;

(13)iiadopting permanent land use and control measures with enforcement provisions that are not less stringent than [which are consistent with] the criteria for land management and use adopted by the director;

(14)iiadopting more comprehensive floodplain management rules that the political subdivision determines are necessary for planning and appropriate to protect public health and safety;

(15)iiparticipating in floodplain management and mitigation initiatives such as the National Flood Insurance Program's Community Rating System, Project Impact, or other initiatives developed by federal, state, or local government; and

(16)iicollecting reasonable fees to cover the cost of administering a local floodplain management program.

Sec.i16.319.iiQUALIFICATION. Political subdivisions wishing to qualify under the National Flood Insurance Program shall have the authority to do so by complying with the directions of the Federal Emergency Management Agency and by:

(1)iievidencing to the director a positive interest in securing flood insurance coverage under the National Flood Insurance Program; and

(2)iigiving to the director satisfactory assurance that measures will have been adopted for the political subdivision that [which measures] will be not less stringent than [consistent with] the comprehensive criteria for land management and use developed by the Federal Emergency Management Agency.

SECTIONi2.18.iiChapter 16, Water Code, is amended by adding Subchapter K to read as follows:

SUBCHAPTER K. WATER CONSERVATION

Sec.i16.401.iiSTATEWIDE WATER CONSERVATION PUBLIC AWARENESS PROGRAM. (a)iiThe executive administrator shall develop and implement a statewide water conservation public awareness program to educate residents of this state about water conservation. The program shall take into account the differences in water conservation needs of various geographic regions of the state and shall be designed to complement and support existing local and regional water conservation programs.

(b)iiThe executive administrator is required to develop and implement the program required by Subsection (a) in a state fiscal biennium only if the legislature appropriates sufficient money in that biennium specifically for that purpose.

Sec.i16.402.iiWATER CONSERVATION PLAN REVIEW. (a)iiEach entity that is required to submit a water conservation plan to the commission under this code shall submit a copy of the plan to the executive administrator.

(b)iiEach entity that is required to submit a water conservation plan to the executive administrator, board, or commission under this code shall report annually to the executive administrator on the entity's progress in implementing the plan.

(c)iiThe executive administrator shall review each water conservation plan and annual report to determine compliance with the minimum requirements established by Section 11.1271 and the submission deadlines developed under Subsection (e) of this section.

5100 80th Legislature — Regular Session 68th Day


(d)iiThe board may notify the commission if the board determines that an entity has violated this section or a rule adopted under this section. Notwithstanding Section 7.051(b), a violation of this section or of a rule adopted under this section is enforceable in the manner provided by Chapter 7 for a violation of a provision of this code within the commission's jurisdiction or of a rule adopted by the commission under a provision of this code within the commission's jurisdiction.

(e)iiThe board and commission jointly shall adopt rules:

(1)iiidentifying the minimum requirements and submission deadlines for the annual reports required by Subsection (b); and

(2)iiproviding for the enforcement of this section and rules adopted under this section.

SECTIONi2.19.iiSection 17.125, Water Code, is amended by adding Subsection (b-2) to read as follows:

(b-2)iiThe board shall give priority to applications for funds for implementation of water supply projects in the state water plan by entities that:

(1)iihave already demonstrated significant water conservation savings; or

(2)iiwill achieve significant water conservation savings by implementing the proposed project for which the financial assistance is sought.

SECTIONi2.20.iiChapter 35, Water Code, is amended by adding Section 35.020 to read as follows:

Sec.i35.020.iiPUBLIC PARTICIPATION IN GROUNDWATER MANAGEMENT PROCESS. It is the policy of the state to encourage public participation in the groundwater management process in areas within a groundwater management area not represented by a groundwater conservation district.

SECTIONi2.21.iiSubsection (d), Section 36.113, Water Code, is amended to read as follows:

(d)iiBefore granting or denying a permit or permit amendment, the district shall consider whether:

(1)iithe application conforms to the requirements prescribed by this chapter and is accompanied by the prescribed fees;

(2)iithe proposed use of water unreasonably affects existing groundwater and surface water resources or existing permit holders;

(3)iithe proposed use of water is dedicated to any beneficial use;

(4)iithe proposed use of water is consistent with the district's certified water management plan;

(5)iiif the well will be located in the Hill Country Priority Groundwater Management Area, the proposed use of water from the well is wholly or partly to provide water to a pond, lake, or reservoir to enhance the appearance of the landscape;

(6)iithe applicant has agreed to avoid waste and achieve water conservation; and

(7)i[(6)]iithe applicant has agreed that reasonable diligence will be used to protect groundwater quality and that the applicant will follow well plugging guidelines at the time of well closure.

SECTIONi2.22.iiSubsection (d), Section 36.117, Water Code, is amended to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 5101


(d)iiNotwithstanding Subsection (b), a district may require a well to be permitted by the district and to comply with all district rules if:

(1)iithe withdrawals from a well in the Hill Country Priority Groundwater Management Area and exempted under Subsection (b)(1) are no longer used solely for domestic use or to provide water for livestock or poultry;

(2)iithe purpose of a well exempted under Subsection (b)(2) is no longer solely to supply water for a rig that is actively engaged in drilling or exploration operations for an oil or gas well permitted by the Railroad Commission of Texas; or

(3)i[(2)]iithe withdrawals from a well exempted under Subsection (b)(3) are no longer necessary for mining activities or are greater than the amount necessary for mining activities specified in the permit issued by the Railroad Commission of Texas under Chapter 134, Natural Resources Code.

SECTIONi2.23.iiSubchapter H, Chapter 49, Water Code, is amended by adding Section 49.2205 to read as follows:

Sec.i49.2205.iiUSE OF RIGHT-OF-WAY EASEMENTS FOR CERTAIN ENERGY-RELATED PURPOSES. (a)iiTo foster the generation and transmission of electricity from clean coal projects, as defined by Section 5.001, renewable energy technology projects, and the capture and storage of carbon dioxide and other greenhouse gases, a district or water supply corporation may allow others to construct, maintain, and operate transmission lines and pipelines over, under, across, on, or along rights-of-way and easements of the district or water supply corporation for transmission of electricity generated by those projects and the transportation of carbon dioxide and other greenhouse gases, unless the use:

(1)iiis incompatible with the public use for which the easement was acquired or condemned; or

(2)iicompromises public health or safety.

(b)iiThe district or water supply corporation is not required to obtain additional consideration for the construction, maintenance, and operation of the transmission lines and pipelines under this section if the person constructing, maintaining, and operating the transmission lines and pipelines bears all costs of the construction, maintenance, and operation of the transmission lines and pipelines and restoring the property. The activities authorized by this subsection may be exercised only with the consent of and subject to the direction of the governing body of the district or water supply corporation.

(c)iiA person that is subject to Subsection (a) that acquires a right-of-way easement on real property for a public use may include in the notice of the acquisition a statement that to foster the generation and transmission of electricity from clean coal projects as defined by Section 5.001, Water Code, renewable energy technology projects, and the capture and storage of carbon dioxide and other greenhouse gases, water districts and water supply corporations may allow others to construct, maintain, and operate transmission lines and pipelines over, under, across, on, or along the rights-of-way and easements for the transmission of electricity that is generated by those projects and transportation of carbon dioxide and other greenhouse gases, unless the use:

(1)iiis incompatible with the public use for which the easement was acquired or condemned; or

5102 80th Legislature — Regular Session 68th Day


(2)iicompromises public health or safety.

(d)iiThis section applies only to a right-of-way or easement acquired by the district or water supply corporation on or after September 1, 2007.

(e)iiThis section does not apply to a right-of-way or easement that is used for the transmission of electricity without the consent of a person owning the transmission lines if that use began before September 1, 2007.

SECTIONi2.24.iiChapter 49, Water Code, is amended by adding Subchapter O to read as follows:

SUBCHAPTER O. EFFECT OF SUBDIVISION OF NONAGRICULTURAL LAND ON WATER RIGHTS

Sec.i49.501.iiDEFINITION. In this subchapter, "municipal water supplier" means a municipality or a water supply corporation.

Sec.i49.502.iiAPPLICABILITY. This subchapter applies only to a district, other than a drainage district, located wholly or partly in a county:

(1)iithat borders the Gulf of Mexico and the United Mexican States; or

(2)iithat is adjacent to a county described by Subdivision (1).

Sec.i49.503.iiPETITION BY MUNICIPAL WATER SUPPLIER TO CONVERT WATER USE AFTER SUBDIVISION. (a)iiThis section applies only to land:

(1)iithat is:

(A)iisubdivided into town lots or blocks or small parcels of the same general nature as town lots or blocks;

(B)iidesigned, intended, or suitable for residential or other nonagricultural purposes, including streets, alleys, parkways, parks, detention or retention ponds, and railroad property and rights-of-way; or

(C)iiin a subdivision created to meet the requirements of a governmental entity authorized to require a recorded plat of subdivided lands;

(2)iithat is in a subdivision for which a plat or map has been filed and recorded in the office of the county clerk of each county in which the subdivision is wholly or partly located; and

(3)iithat is or was assessed as flat rate irrigable property in the municipal water supplier's certificated service area or its corporate area.

(b)iiA municipal water supplier that serves land described by Subsection (a) may petition the district in accordance with this section to convert the proportionate irrigation water right to the Rio Grande from irrigation use to municipal use with municipal priority of allocation under commission rules, for the use and benefit of the municipal water supplier.

(c)iiThe municipal water supplier must file the petition with the district not later than January 1 after the expiration of two years after the date the plat or map was recorded under Subsection (a). The district shall consider the petition not later than January 31 of the year following the year in which the petition was filed.

(d)iiThe petition must identify by subdivision name or other sufficient description the land that the municipal water supplier supplies or has the right to supply potable water.

(e)iiThis section applies only to one subdivision of the land recorded under Subsection (a). This section does not apply to any further subdivision of the same property.

Saturday, May 26, 2007 SENATE JOURNAL 5103


Sec.i49.504.iiEFFECT OF MUNICIPAL WATER SUPPLIER'S FAILURE TO FILE A PETITION. (a)iiIf a municipal water supplier does not file a petition under Section 49.503, the district may retain the water rights for use by the district or may declare the water as excess and contract for the sale or use of the water as determined by the district.

(b)iiBefore a district may contract for the sale or use of water for more than one year with a purchaser located outside of a county described by Section 49.502, the district must, for 90 days:

(1)iimake the water available under the same terms to all municipal water suppliers located in those counties; and

(2)iiadvertise the offer to sell or contract for the use of the water by posting notice on:

(A)iiany website of the Rio Grande Watermaster's Office;

(B)iiany website of the Rio Grande Regional Water Authority; and

(C)iithe official posting place for the district's board meetings at the district's office.

(c)iiIf, after the 90th day after the last date on which the district posted notice, a municipal water supplier in a county described by Section 49.502 has not contracted with the district for the sale or use of the water, the district may contract with any other person for the sale or use of the water under the terms of the offer advertised under Subsection (b).

Sec.i49.505.iiCALCULATION OF PROPORTIONATE WATER RIGHTS. A district that receives a petition under Section 49.503 shall compute the proportionate amount of water rights to the Rio Grande. The proportionate amount of water rights is equal to the amount of irrigable acres of land in the subdivision multiplied by the lesser of:

(1)ii1.25 acre-feet per irrigable acre; or

(2)iithe sum of all irrigation water rights owned by the district on Septemberi1, 2007, as if the water rights had been converted to municipal use under applicable commission rules, divided by the total amount of irrigable acres of land in the district on September 1, 2007.

Sec.i49.506.iiPROVISION OR CONVERSION OF PROPORTIONATE WATER RIGHTS BY DISTRICT. (a)iiNot later than the second anniversary of the date the municipal water supplier files a petition under Section 49.503:

(1)iia district shall provide the municipal water supplier with the proportionate water rights described by Section 49.505 from the district's existing water rights; or

(2)iia district shall, if the district does not have sufficient existing water rights:

(A)iiapply for appropriate amendments to the district's water rights under commission rules to convert the proportionate water rights from irrigation use to municipal use with municipal priority of allocation; and

(B)iiprovide to the municipal water supplier the converted rights described by Section 49.505.

(b)iiThe district may continue to use the irrigation use water for district purposes until:

5104 80th Legislature — Regular Session 68th Day


(1)iithe commission approves the amendment to the district's water rights; or

(2)iithe water is otherwise provided to the municipal water supplier.

(c)iiA district that applies for appropriate amendments under Subsection (a)(2) shall provide the municipal water supplier with an estimate of the district's reasonable costs for the administrative proceedings. The district is not required to begin the proceedings until the municipal water supplier deposits the amount of the estimate with the district. The municipal water supplier shall pay the district any reasonable costs that exceed the estimate. The district shall refund the balance of the deposit if the actual cost is less than the estimate.

Sec.i49.507.iiCONTRACT TO PURCHASE PROPORTIONATE WATER RIGHTS; WATER RIGHTS SALE CONTRACT. (a)iiA municipal water supplier may contract to purchase the proportionate water rights described by Section 49.505.

(b)iiThe purchase price may not exceed 68 percent of the current market value, as determined under Section 49.509, for the year that the municipal water supplier petitions the district.

(c)iiThe contract must be in writing in a document entitled "Water Rights Sales Contract."

(d)iiThe contract must include the purchase price for the water rights or, if the consideration for the sale is not monetary, the terms of the sale.

(e)iiThe municipal water supplier shall file the contract with the Rio Grande watermaster not later than the 10th day after the date the contract is executed.

(f)iiThe municipal water supplier shall pay the purchase price when the proportionate amount of water rights is made available to the municipal water supplier.

Sec.i49.508.iiCONTRACT TO USE PROPORTIONATE WATER RIGHTS; WATER SUPPLY CONTRACT. (a)iiA municipal water supplier may contract to use water associated with the proportionate water rights described by Section 49.505.

(b)iiThe contract must be for at least 40 years.

(c)iiThe price for the contractual right to use the municipal use water is based on an amount for one acre-foot of municipal use water with a municipal use priority of allocation and may not exceed the sum of:

(1)iian amount equal to the district's annual flat rate charge per assessed acre; and

(2)iithe equivalent of the charge for four irrigations per flat rate acre of irrigable property in the district.

(d)iiThe parties to the contract shall agree on the terms of payment of the contract price.

(e)iiThe board periodically shall determine the flat rate charge and irrigation per acre charge described by Subsection (c).

(f)iiThe contract must be in writing in a document entitled "Water Supply Contract." The contract may contain any terms to which the parties agree.

(g)iiThe municipal water supplier shall file the contract with the Rio Grande watermaster not later than the 10th day after the date the contract is executed.

Sec.i49.509.iiDUTY OF RIO GRANDE REGIONAL WATER AUTHORITY TO CALCULATE CURRENT MARKET VALUE. (a)iiThe Rio Grande Regional Water Authority annually at its January meeting shall calculate the current market

Saturday, May 26, 2007 SENATE JOURNAL 5105


value by using the average price per acre-foot of municipal use water after conversion from irrigation use water to municipal use water with a municipal priority of allocation under commission rules of the last three purchases involving:

(1)iia municipal water supplier;

(2)iia party other than a municipal water supplier; and

(3)iiat least 100 acre-feet of municipal use water, with municipal priority of allocation.

(b)iiThe Rio Grande Regional Water Authority shall use information from the water rights sales contracts reported to the Rio Grande Watermaster's Office to calculate the current market value.

(c)iiThe Rio Grande Regional Water Authority shall make the calculation:

(1)iiwithout charging any of the parties involved; and

(2)iiusing 100 percent of the value of monetary exchanges, not in-kind exchanges.

Sec.i49.510.iiACCOUNTING FOR SALE OF WATER RIGHTS. A district shall maintain an accounting of money received from the sale of water rights under this subchapter.

Sec.i49.511.iiCAPITAL IMPROVEMENTS. A district shall designate at least 75 percent of the proceeds from the sale of water rights for capital improvements in the district.

Sec.i49.512.iiMAP OF SERVICE AREA. (a)iiIn this section, "outer boundaries of a district" means district boundaries without considering any exclusion of land from inside the district.

(b)iiEach municipal water supplier that has a certificate of convenience and necessity service area in the outer boundaries of a district shall file a map of the service area with the district.

(c)iiThe municipal water supplier shall update the map and forward the map to the district when changes are made.

(d)iiA district periodically shall provide to a municipal water supplier that serves territory in the district a copy of the district's map showing the outer boundaries of the district.

(e)iiA district may request from a municipal water supplier a map of the municipal water supplier's service area, and a municipal water supplier may request from the district a map of the district's outer boundaries. On request, the district and a municipal water supplier shall provide the map free of charge to each other at least one time each year. If the district or municipal water supplier receives more than one request a year for a map, the district or municipal water supplier may charge a reasonable fee for the map.

SECTIONi2.25.iiSubchapter Z, Chapter 51, Education Code, is amended by adding Section 51.969 to read as follows:

Sec.i51.969.iiON-SITE RECLAIMED SYSTEM TECHNOLOGIES CURRICULUM. The Texas Higher Education Coordinating Board shall encourage each institution of higher education to develop curriculum and provide related instruction regarding on-site reclaimed system technologies, including rainwater harvesting, condensate collection, or cooling tower blow down.

5106 80th Legislature — Regular Session 68th Day


SECTIONi2.26.iiChapter 68, Education Code, is amended by adding Subchapter B to read as follows:

SUBCHAPTER B. POWERS AND DUTIES OF BOARD

Sec.i68.21.iiSUSTAINABLE WATER SUPPLY RESEARCH CENTER. (a)iiIn this section, "center" means the Sustainable Water Supply Research Center.

(b)iiThe board may establish and operate the Sustainable Water Supply Research Center as part of The University of Texas at Arlington.

(c)iiIf established, the center shall:

(1)iiconduct, sponsor, or direct multidisciplinary research directed toward:

(A)iipromoting water conservation through development of a sustainable water supply for this state; and

(B)iimitigating the effect of diminishing water supplies on the economy and people of this state; and

(2)iiconduct a comprehensive, interdisciplinary instructional program in water conservation with emphasis on development of a sustainable water supply at the graduate level and offer undergraduate courses for students interested in water conservation and sustainable water supply development.

(d)iiThe organization, control, and management of the center are vested in the board.

(e)iiThe center may enter into an agreement or may cooperate with a public or private entity to perform the research functions of the center.

(f)iiThe board may solicit, accept, and administer gifts and grants from any public or private source for the use and benefit of the center.

SECTIONi2.27.iiSection 447.004, Government Code, is amended by adding Subsection (c-1) to read as follows:

(c-1)iiThe procedural standards adopted under this section must require that on-site reclaimed system technologies, including rainwater harvesting, condensate collection, or cooling tower blow down, or a combination of those system technologies, for nonpotable indoor use and landscape watering be incorporated into the design and construction of:

(1)iieach new state building with a roof measuring at least 10,000 square feet; and

(2)iiany other new state building for which the incorporation of such systems is feasible.

SECTIONi2.28.iiSection 341.042, Health and Safety Code, is amended to read as follows:

Sec.i341.042.iiSTANDARDS FOR HARVESTED RAINWATER. (a)iiThe commission shall establish recommended standards relating to the domestic use of harvested rainwater, including health and safety standards for treatment and collection methods for harvested rainwater intended for drinking, cooking, or bathing.

(b)iiThe commission by rule shall provide that if a structure is connected to a public water supply system and has a rainwater harvesting system for indoor use:

(1)iithe structure must have appropriate cross-connection safeguards; and

(2)iithe rainwater harvesting system may be used only for nonpotable indoor purposes.

Saturday, May 26, 2007 SENATE JOURNAL 5107


(c)iiStandards and rules adopted by the commission under this chapter governing public drinking water supply systems do not apply to a person:

(1)iiwho harvests rainwater for domestic use; and

(2)iiwhose property is not connected to a public drinking water supply system.

SECTIONi2.29.iiSubsection (b), Section 212.0101, Local Government Code, is amended to read as follows:

(b)iiThe Texas [Natural Resource Conservation] Commission on Environmental Quality by rule shall establish the appropriate form and content of a certification to be attached to a plat application under this section.

SECTIONi2.30.iiSubsection (b), Section 232.0032, Local Government Code, is amended to read as follows:

(b)iiThe Texas [Natural Resource Conservation] Commission on Environmental Quality by rule shall establish the appropriate form and content of a certification to be attached to a plat application under this section.

SECTIONi2.31.iiChapter 401, Local Government Code, is amended by adding Section 401.006 to read as follows:

Sec.i401.006.iiWATER CONSERVATION BY HOME-RULE MUNICIPALITY. A home-rule municipality may adopt and enforce ordinances requiring water conservation in the municipality and by customers of the municipality's municipally owned water and sewer utility in the extraterritorial jurisdiction of the municipality.

SECTIONi2.32.iiSubchapter Z, Chapter 402, Local Government Code, is amended by adding Section 402.911 to read as follows:

Sec.i402.911.iiDUTIES OF WATER SERVICE PROVIDER TO AN AREA SERVED BY SEWER SERVICE OF CERTAIN POLITICAL SUBDIVISIONS. (a)iiThis section applies only to an area:

(1)iithat is located in a county that has a population of more than 1.3 million; and

(2)iiin which a customer's sewer service is provided by a municipality or conservation and reclamation district that also provides water service to other customers and the same customer's water service is provided by another entity.

(b)iiFor each person the water service provider serves in an area to which this section applies, the water service provider shall provide the municipality or district with any relevant customer information so that the municipality or district may bill users of the sewer service directly and verify the water consumption of users. Relevant customer information provided under this section includes the name, address, and telephone number of the customer of the water service provider, the monthly meter readings of the customer, monthly consumption information, including any billing adjustments, and certain meter information, such as brand, model, age, and location.

(c)iiThe municipality or district shall reimburse the water service provider for its reasonable and actual incremental costs for providing services to the municipality or district under this section. Incremental costs are limited to only those costs that are in addition to the water service provider's costs in providing its services to its customers, and those costs must be consistent with the costs incurred by other water utility providers. Only if requested by the wastewater provider, the water service provider

5108 80th Legislature — Regular Session 68th Day


must provide the municipality or district with documentation certified by a certified public accountant of the reasonable and actual incremental costs for providing services to the municipality or district under this section.

(d)iiA municipality or conservation and reclamation district may provide written notice to a person to whom the municipality's or district's sewer service system provides service if the person has failed to pay for the service for more than 90 days. The notice must state the past due amount owed and the deadline by which the past due amount must be paid or the person will lose water service. The notice may be sent by mail or hand-delivered to the location at which the sewer service is provided.

(e)iiThe municipality or district may notify the water service provider of a person who fails to make timely payment after the person receives notice under Subsection (d). The notice must indicate the number of days the person has failed to pay for sewer service and the total amount past due. On receipt of the notice, the water service provider shall discontinue water service to the person.

(f)iiThis section does not apply to a nonprofit water supply or sewer service corporation created under Chapter 67, Water Code, or a district created under Chapter 65, Water Code.

SECTIONi2.33.iiSection 430.003, Local Government Code, is amended to read as follows:

Sec.i430.003.iiEXEMPTIONS OF CERTAIN [STATE] PROPERTY FROM INFRASTRUCTURE FEES. No county, municipality, or utility district may collect from a state agency or a public or private institution of higher education any fee charged for the development or maintenance of programs or [of] facilities for the control of excess water or storm water.

SECTIONi2.34.iiSection 1903.053, Occupations Code, is amended to read as follows:

Sec.i1903.053.iiSTANDARDS. (a)iiThe commission shall adopt by rule and enforce standards governing:

(1)iithe connection of irrigation systems to any water supply;

(2)iithe design, installation, and operation of irrigation systems;

(3)iiwater conservation; and

(4)iithe duties and responsibilities of licensed irrigators.

(b)ii[The commission may adopt standards for irrigation that include water conservation, irrigation system design and installation, and compliance with municipal codes.

[(c)]iiThe commission may not require or prohibit the use of any irrigation system, component part, or equipment of any particular brand or manufacturer.

(c)iiIn adopting standards under this section, the commission shall consult the council.

SECTIONi2.35.ii(a)iiIn this section, "board" means the Texas Water Development Board.

(b)iiThe board, in coordination with the Far West Texas Regional Water Planning Group established pursuant to Section 16.053, Water Code, shall conduct a study regarding the possible impact of climate change on surface water supplies from the Rio Grande.

Saturday, May 26, 2007 SENATE JOURNAL 5109


(c)iiIn conducting the study, the board shall convene a conference within the Far West Texas regional water planning area designated pursuant to Section 16.053, Water Code, to review:

(1)iiany analysis conducted by a state located to the west of this state regarding the impact of climate change on surface water supplies in that state;

(2)iiany other current analysis of potential impacts of climate change on surface water resources; and

(3)iirecommendations for incorporation of potential impacts of climate change into the Far West Texas Regional Water Plan, including potential impacts to the Rio Grande in Texas subject to the Rio Grande Compact and identification of feasible water management strategies to offset any potential impacts.

(d)iiThe conference should include, but not be limited to, the participation of representatives of:

(1)iithe Far West Texas Regional Water Planning Group;

(2)iiwater authorities;

(3)iiindustrial customers;

(4)iiagricultural interests;

(5)iimunicipalities;

(6)iifishing or recreational interests;

(7)iienvironmental advocacy organizations; and

(8)iiinstitutions of higher education.

(e)iiNot later than December 31, 2008, the board shall submit to the legislature a written report regarding the study findings under this section.

SECTIONi2.36.ii(a)iiChapter 9, Water Code, is repealed.

(b)iiThe Texas Water Advisory Council is abolished on the effective date of this article.

SECTIONi2.37.iiChapter 64, Water Code, is repealed.

SECTIONi2.38.iiAs soon as practicable on or after the effective date of this article, the Texas Water Development Board shall appoint the initial members of the Water Conservation Advisory Council, as required by Section 10.003, Water Code, as added by this article. In making the initial appointments, the board shall designate seven members to serve terms expiring August 31, 2009, eight members to serve terms expiring August 31, 2011, and eight members to serve terms expiring Augusti31, 2013.

SECTIONi2.39.iiThe changes made by this Act to Section 13.2451, Water Code, apply only to:

(1)iian application for a certificate of public convenience and necessity or for an amendment to a certificate of public convenience and necessity submitted to the Texas Commission on Environmental Quality on or after the effective date of this Act;

(2)iia proceeding to amend or revoke a certificate of public convenience and necessity initiated on or after the effective date of this Act;

(3)iia certificate of public convenience and necessity issued to a municipality, regardless of the date the certificate was issued;

(4)iian application by a municipality or by a utility owned by a municipality for a certificate of public convenience and necessity or for an amendment to a certificate, regardless of the date the application was filed; and

5110 80th Legislature — Regular Session 68th Day


(5)iia proceeding to amend or revoke a certificate of public convenience and necessity held by a municipality or by a utility owned by a municipality, regardless of the date the proceeding was initiated.

SECTIONi2.40.iiSections 15.102 and 17.125, Water Code, as amended by this article, and Sections 15.9751 and 16.1311, Water Code, as added by this article, apply only to an application for financial assistance filed with the Texas Water Development Board on or after the effective date of this article. An application for financial assistance filed before the effective date of this article is governed by the law in effect on the date the application was filed, and the former law is continued in effect for that purpose.

SECTIONi2.41.iiThe change in law made by Subchapter O, Chapter 49, Water Code, as added by this Act, applies only to a subdivision for which a plat or map has been recorded in the office of the county clerk of a county on or after the effective date of this Act. A subdivision for which a plat or map was recorded before the effective date of this Act is covered by the law in effect on the date the plat or map was recorded, and the former law is continued in effect for that purpose.

SECTIONi2.42.iiNot later than June 1, 2008, the Texas Commission on Environmental Quality shall adopt standards as required by Section 1903.053, Occupations Code, as amended by this article, to take effect January 1, 2009.

SECTIONi2.43.iiSection 2.27 of this article, adding Subsection (c-1), Section 447.004, Government Code, takes effect September 1, 2009.

ARTICLE 3. CONSTRUCTION AND OPERATION OF RESERVOIRS

SECTIONi3.01.iiSection 16.051, Water Code, is amended by adding Subsection (i) to read as follows:

(i)iiFor purposes of this section, the acquisition of fee title or an easement by a political subdivision for the purpose of providing retail public utility service to property in the reservoir site or allowing an owner of property in the reservoir site to improve or develop the property may not be considered a significant impairment that prevents the construction of a reservoir site under Subsection (g). A fee title or easement acquired under this subsection may not be considered the basis for preventing the future acquisition of land needed to construct a reservoir on a designated site.

SECTIONi3.02.iiSubchapter E, Chapter 16, Water Code, is amended by adding Sections 16.143 and 16.144 to read as follows:

Sec.i16.143.iiOPTION TO LEASE. (a)iiA former owner of real property used for agricultural purposes that was acquired, voluntarily or through the exercise of the power of eminent domain, for a reservoir whose site has been designated as unique for the construction of a reservoir under Section 16.051(g) is entitled to lease the property from the person who acquired the property under terms that allow the former owner to continue to use the property for agricultural purposes until the person who acquired the property determines that such use must be terminated to allow for the physical construction of the reservoir. Consistent with Subsection (b), the lease is subject to the terms and conditions set forth by the person who has acquired the property that are related to the use of the property by the former owner, including the term of the lease, the rent the former owner is required to pay under the lease, and the uses that may be allowed on the property during the term of the lease.

Saturday, May 26, 2007 SENATE JOURNAL 5111


(b)iiA former owner of real property used for agricultural purposes is entitled to lease the property for the property's agricultural rental value until the person who acquired the property determines that the lease must be terminated to allow for the physical construction of the reservoir.

Sec.i16.144.iiENVIRONMENTAL MITIGATION. (a)iiIf a person proposing to construct a reservoir whose site has been designated as unique for the construction of a reservoir under Section 16.051(g) is required to mitigate future adverse environmental effects arising from the construction or operation of the reservoir or its related facilities, the person shall, if authorized by the applicable regulatory authority, attempt to mitigate those effects by offering to contract with and pay an amount of money to an owner of real property located outside of the reservoir site to maintain the property through an easement instead of acquiring the fee simple title to the property for that purpose.

(b)iiAn owner of real property may reject an offer made under Subsection (a). If agreement on the terms of an easement under Subsection (a) cannot be reached by the parties after a good faith attempt and offer is made, then the party constructing the reservoir may obtain fee title to the property through voluntary or involuntary means.

ARTICLE 4. UNIQUE RESERVOIR SITES AND SITES OF UNIQUE ECOLOGICAL VALUE

SECTIONi4.01.iiSection 16.051, Water Code, is amended by adding Subsection (g-1) to read as follows:

(g-1)iiNotwithstanding any other provisions of law, a site is considered to be a designated site of unique value for the construction of a reservoir if the site is recommended for designation in the 2007 state water plan adopted by the board and in effect on May 1, 2007. The designation of a unique reservoir site under this subsection terminates on September 1, 2015, unless there is an affirmative vote by a proposed project sponsor to make expenditures necessary in order to construct or file applications for permits required in connection with the construction of the reservoir under federal or state law.

SECTIONi4.02.iiDESIGNATION OF SITES OF UNIQUE ECOLOGICAL VALUE. The legislature, as authorized by Subsection (f), Section 16.051, Water Code, designates those river or stream segment sites recommended in the 2007 state water plan as being of unique ecological value.

SECTIONi4.03.iiRESTRICTION ON ELIGIBILITY TO HOLD WATER RIGHTS; LIABILITY FOR CONSTRUCTION, OPERATION, AND MAINTENANCE COSTS. (a)iiThis section applies only to the proposed Marvin Nichols and Lake Fastrill reservoirs.

(b)iiThe right to appropriate at least 20 percent of the quantity of water that is authorized to be appropriated from each proposed reservoir must be held by one or more entities located in the regional water planning area in which the reservoir is to be located.

(c)iiIf one or more entities located outside the regional water planning area in which a proposed reservoir is to be located are to hold the right to appropriate a majority of the quantity of water that is authorized to be appropriated from the reservoir, that entity or those entities must pay all of the costs of constructing, operating, and maintaining the reservoir until such time as one or more entities located

5112 80th Legislature — Regular Session 68th Day


in the regional water planning area in which the reservoir is to be located begins diverting water. At such time, the entity or entities making a diversion shall pay a pro-rata share of the cost of operating and maintaining the reservoir.

SECTIONi4.04.iiSTUDY COMMISSION ON REGION C WATER SUPPLY. (a)iiThe Study Commission on Region C Water Supply is established. The study commission consists of six members as follows:

(1)iithree members appointed by the Region C Regional Water Planning Group; and

(2)iithree members appointed by the Region D Regional Water Planning Group.

(b)iiA member of the study commission may be, but is not required to be, a voting member of the regional water planning group that appointed the member.

(c)iiThe members of the study commission shall select a presiding officer from among the members.

(d)iiMembers of the study commission are not entitled to compensation for service on the study commission but may be reimbursed for travel expenses incurred while conducting the business of the study commission, as provided for in the General Appropriations Act.

(e)iiThe study commission shall:

(1)iireview the water supply alternatives available to the Region C Regional Water Planning Area, including obtaining additional water supply from Wright Patman Lake, Toledo Bend Reservoir, Lake Texoma, Lake O' the Pines, other existing and proposed reservoirs, and groundwater;

(2)iiin connection with the review under Subdivision (1) of this subsection, analyze the socioeconomic effect on the area where the water supply is located that would result from the use of the water to meet the water needs of the Region C Regional Water Planning Area, including:

(A)iithe effects on landowners, agricultural and natural resources, businesses, industries, and taxing entities of different water management strategies; and

(B)iiin connection with the use by the Region C Regional Water Planning Area of water from Wright Patman Lake, the effect on water availability in that lake and the effect on industries relying on that water availability;

(3)iidetermine whether water demand in the Region C Regional Water Planning Area may be reduced through additional conservation and reuse measures so as to postpone the need for additional water supplies;

(4)iievaluate measures that would need to be taken to comply with the mitigation requirements of the United States Army Corps of Engineers in connection with any proposed new reservoirs, including identifying potential mitigation sites;

(5)iiconsider whether the mitigation burden described by Subdivision (4) of this subsection may be shared by the Regions C and D Regional Water Planning Areas in proportion to the allocation to each region of water in any proposed reservoir;

Saturday, May 26, 2007 SENATE JOURNAL 5113


(6)iireview innovative methods of compensation to affected property owners, including royalties for water stored on acquired properties and annual payments to landowners for properties acquired for the construction of a reservoir to satisfy future water management strategies;

(7)iievaluate the minimum number of surface acres required for the construction of proposed reservoirs in order to develop adequate water supply; and

(8)iiidentify the locations of proposed reservoir sites and proposed mitigation sites, as applicable, as selected in accordance with existing state and federal law, in the Regions C and D Regional Water Planning Areas using satellite imagery with sufficient resolution to permit land ownership to be determined.

(f)iiThe study commission may not be assisted by any person that is a party to or is employed by a party to a contract to perform engineering work with respect to site selection, permitting, design, or construction of the proposed Marvin Nichols reservoir.

(g)iiThe Texas Water Development Board, on request of the study commission, may provide staff support or other assistance necessary to enable the study commission to carry out its duties. The Texas Water Development Board shall provide funding for the study commission, including funding of any studies conducted by the study commission, from the regional planning budget of the board.

(h)iiNot later than December 1, 2010, the study commission shall deliver a report to the governor, lieutenant governor, and speaker of the house of representatives that includes:

(1)iiany studies completed by the study commission;

(2)iiany legislation proposed by the study commission;

(3)iia recommendation as to whether Marvin Nichols should remain a designated reservoir site; andi

(4)iiother findings and recommendations of the study commission.

(i)iiThe study commission is abolished and this section expires December 31, 2011.

SECTIONi4.05.iiEFFECTIVE DATE. This article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect September 1, 2007.

ARTICLE 5. LEGISLATIVE JOINT INTERIM COMMITTEE

SECTIONi5.01.ii(a)iiIn this section, "committee" means the joint interim committee on state water funding.

(b)iiThe committee is composed of eight members as follows:

(1)iithe chair of the Senate Committee on Natural Resources and the chair of the House Committee on Natural Resources who shall serve as joint chairs of the committee;

(2)iithree members of the senate appointed by the lieutenant governor; and

(3)iithree members of the house of representatives appointed by the speaker of the house of representatives.

(c)iiAn appointed member of the committee serves at the pleasure of the appointing official.

5114 80th Legislature — Regular Session 68th Day


(d)iiThe committee shall meet at least annually with the executive director of the Texas Commission on Environmental Quality and the executive administrator of the Texas Water Development Board to:

(1)iireceive information on water infrastructure needs as identified in the state water plan;

(2)iireceive information on infrastructure cost and funding options to be used by local entities to meet the needs identified in the state water plan;

(3)iireceive analyses of the funding gap and recommendations on how to address those funding needs;

(4)iireceive information on whether all water fees assessed are sufficient to support the required regulatory water-related state program functions and activities; and

(5)iiidentify viable, sustainable, dedicated revenues and fee sources, or increases to existing revenue and fees, to support state water programs and to provide for natural resources data collection and dissemination, financial assistance programs, and water resources planning, including funding to implement water management strategies in the state water plan.

(e)iiThe committee may hold hearings and may request reports and other information from state agencies as necessary to carry out this section.

(f)iiThe Senate Committee on Natural Resources and the House Committee on Natural Resources shall provide staff necessary for the committee to fulfill its duties.

(g)iiNot later than December 1, 2008, the committee shall report to the governor, the lieutenant governor, and the speaker of the house of representatives on the committee's activities under Subsection (d) of this section. The report shall include recommendations of any legislative action necessary to address funding needs to support the state's water programs and water infrastructure needs.

ARTICLE 6. WATER DEVELOPMENT BOARD

SECTIONi6.01.iiSection 16.344, Water Code, is amended by adding Subsections (d) through (i) to read as follows:

(d)iiNotwithstanding Section 16.343(g) or Section 16.350(a), a political subdivision may temporarily continue to receive funds under Subchapter K, Chapter 17, if the political subdivision submits a request for temporary continuation of funding and the board determines that:

(1)iithe political subdivision's initial funding application and any amendments for a designated area were reviewed and approved by the board before January 1, 2007;

(2)iiwithholding funds would result in an undue hardship for occupants of the property to be served by unreasonably delaying the provision of adequate water or wastewater services;

(3)iiwithholding funds would result in inefficient use of local, state, or federal funds under the program;

(4)iithe political subdivision has committed to take the necessary and appropriate actions to correct any deficiencies in adoption or enforcement of the model rules within the time designated by the board, but not later than the 90th day after the date the board makes the determinations under this subsection;

Saturday, May 26, 2007 SENATE JOURNAL 5115


(5)iithe political subdivision has sufficient safeguards in place to prevent the proliferation of colonias; and

(6)iiduring the 30 days after the date the board receives a request under this subsection, the board, after consulting with the attorney general, secretary of state, and commission, has not received an objection from any of those entities to the request for temporary continuation of funding.

(e)iiIn applying Subsection (d) to applications for increased financial assistance, the board shall only consider areas that were included in the initial application, except that the board may reconsider the eligibility of areas that were the subject of a facility plan in the initial application and that may be determined to be eligible based on criteria in effect September 1, 2005.

(f)iiThe political subdivision shall take necessary and appropriate actions to correct any deficiencies in its adoption and enforcement of the model rules within the time period required by the board, not to exceed the 90-day period described by Subsection (d)(4), and provide evidence of compliance to the board. The board shall discontinue funding unless the board makes a determination based on the evidence provided that the political subdivision has demonstrated sufficient compliance to continue funding.

(g)iiExcept as provided by Subsections (d)-(f), if the board determines that a county or city that is required to adopt and enforce the model rules is not enforcing the model rules, the board shall discontinue funding for all projects within the county or city that are funded under Subchapter K, Chapter 17.

(h)iiThe board may not accept or grant applications for temporary funding under Subsection (d) after June 1, 2009.

(i)iiSubsections (d), (e), (f), (g), and (h) and this subsection expire September 1, 2009.

ARTICLE 7. RATE CLASSES FOR BILLING

SECTIONi7.01.iiSubchapter H, Chapter 49, Water Code, is amended by adding Section 49.2122 to read as follows:

Sec.i49.2122.iiESTABLISHMENT OF CUSTOMER CLASSES. (a)iiNotwithstanding any other law, a district may establish different charges, fees, rentals, or deposits among classes of customers that are based on any factor the district considers appropriate, including:

(1)iithe similarity of the type of customer to other customers in the class, including:

(A)iiresidential;

(B)iicommercial;

(C)iiindustrial;

(D)iiapartment;

(E)iirental housing;

(F)iiirrigation;

(G)iihomeowner associations;

(H)iibuilder;

(I)iiout-of-district;

(J)iinonprofit organization; and

(K)iiany other type of customer as determined by the district;

5116 80th Legislature — Regular Session 68th Day


(2)iithe type of services provided to the customer class;

(3)iithe cost of facilities, operations, and administrative services to provide service to a particular class of customer, including additional costs to the district for security, recreational facilities, or fire protection paid from other revenues; and

(4)iithe total revenues, including ad valorem tax revenues and connection fees, received by the district from a class of customers relative to the cost of service to the class of customers.

(b)iiA district is presumed to have weighed and considered appropriate factors and to have properly established charges, fees, rentals, and deposits absent a showing that the district acted arbitrarily and capriciously.

ARTICLE 8. STUDY OF ROLE OF LAKE SOMERVILLE IN ECONOMIC DEVELOPMENT

SECTIONi8.01.iiThe legislature finds that:

(1)iiin 1954, the United States Congress authorized the construction of Lake Somerville to provide flood control, water conservation, and other beneficial uses for nearby areas; subsequently, the United States Army Corps of Engineers began reservoir construction in 1962 and began to impound water in 1967;

(2)iistraddling the borders of Burleson, Washington, and Lee Counties, on Yegua Creek 20 river miles upstream from that creek's confluence with the Brazos River, the lake has a storage capacity of 337,700 acre-feet;

(3)iioperation of the lake is supervised by the Fort Worth District of the United States Army Corps of Engineers; the lake is one of nine federal reservoirs that are integrated into the Brazos River Authority's basin-wide system and associated water resource development master plan;

(4)iithe Brazos River Authority owns the stored water, a source from which it furnishes supplies to the City of Brenham according to a contract that was last renewed for a 10-year period in 2003;

(5)iialso significantly involved in the region is the Lower Colorado River Authority, which, from its diverse mix of power plants, provides wholesale electricity to various communities as well as offering them its economic research and expertise;

(6)iialthough Lake Somerville has long been a tourist destination for fishing and other water recreation, the facility has not fully effectuated the three-county economic impact that originally was expected at the time that it was built; and

(7)iia study of Lake Somerville's role in economic development would assist in explaining why the lake has not yet had that impact, beyond the tourism industry, and would help to identify impediments that currently restrict its contribution as well as strategies that would better maximize its economic potential.

SECTIONi8.02.iiThe Brazos River Authority and the Lower Colorado River Authority shall:

(1)iiconduct, with appropriate input from the public and private sectors, a joint baseline study of the role of Lake Somerville in the economic development of the surrounding vicinity; and

(2)iijointly submit a full report of their findings and recommendations to the 81st Legislature when that legislature convenes in January 2009.

Saturday, May 26, 2007 SENATE JOURNAL 5117


ARTICLE 9. AGUA SPECIAL UTILITY DISTRICT

SECTIONi9.01.iiThe heading to Chapter 7201, Special District Local Laws Code, is amended to read as follows:

CHAPTER 7201. AGUA [LA JOYA] SPECIAL UTILITY DISTRICT

SECTIONi9.02.iiSection 7201.001, Special District Local Laws Code, is amended by amending Subdivision (3) and adding Subdivision (4) to read as follows:

(3)ii"Director" means a member of the board.

(4)ii"District" means the Agua [La Joya] Special Utility District.

SECTIONi9.03.iiSubsection (c), Section 7201.002, Special District Local Laws Code, is amended to read as follows:

(c)iiThe [On the effective date of the Act enacting this chapter, the] corporation shall be dissolved and succeeded without interruption by the district as provided by Subchapter A1.

SECTIONi9.04.iiSection 7201.005, Special District Local Laws Code, is amended by amending Subsections (a) and (b) and adding Subsection (d) to read as follows:

(a)iiThe [boundaries of the corporation and initial boundaries of the] district is composed of the territory described by Section 9.12 of the Act enacted by the 80th Legislature, Regular Session, 2007, amending this subsection [are coextensive with the service areas covered by Certificates of Convenience and Necessity Nos. 10559 and 20785, as recorded on the Texas Commission on Environmental Quality maps associated with those certificates. Those maps are incorporated in this section by reference].

(b)iiThe boundaries and field notes contained in Section 9.12 of the Act enacted by the 80th Legislature, Regular Session, 2007, amending this subsection form a closure. A mistake made in the field notes or in copying the field notes in the legislative process [preparation, copying, or filing of the maps described by Subsection (a) and on file with the Texas Commission on Environmental Quality] does not affect:

(1)iithe organization, existence, or validity of the district;

(2)iithe right of the district to issue bonds; or

(3)iithe legality or operation of the district.

(d)iiThe territory of the district does not include and the district does not have jurisdiction over land that has never been in the service area of the corporation regardless of any erroneous inclusion of that land in the boundaries and field notes in Section 9.12 of the Act enacted by the 80th Legislature, Regular Session, 2007, amending this section.

SECTIONi9.05.iiSection 7201.021, Special District Local Laws Code, is amended by amending Subsections (a), (b), and (d) and adding Subsection (f) to read as follows:

(a)iiExcept as provided by this subsection, after the appointment of initial directors under Section 7201.051, the receiver for the corporation [On the effective date of the Act enacting this chapter, the corporation] shall transfer the assets, debts, and contractual rights and obligations of the corporation, including all legal claims against the corporation in effect on the date of the transfer, to the district and provide

5118 80th Legislature — Regular Session 68th Day


notices and make recordings of the transfer required by the Water Code and general law. If the transfer of any debt requires the permission of the lender, the receiver shall initiate proceedings to obtain that permission.

(b)iiIn accordance with the orders of the receivership court and not [Not] later than the 30th day after the date of the transfer under Subsection (a), the receiver for [board of directors of] the corporation shall commence dissolution proceedings of the corporation.

(d)iiThe receiver for [board of directors of] the corporation shall notify the Texas Commission on Environmental Quality of the dissolution of the corporation and its succession in interest by [the creation of] the district in order [to replace it] to effect the transfer of Certificates of Convenience and Necessity Nos. 10559 and 20785 to the district.

(f)iiAfter the Texas Commission on Environmental Quality takes the action required by Subsection (e), the court shall terminate the receivership.

SECTIONi9.06.iiSection 7201.022, Special District Local Laws Code, is amended to read as follows:

Sec.i7201.022.iiEXPIRATION OF SUBCHAPTER. This subchapter expires September 1, 2012 [2008].

SECTIONi9.07.iiSection 7201.051, Special District Local Laws Code, is amended to read as follows:

Sec.i7201.051.iiAPPOINTMENT OF INITIAL [TEMPORARY] DIRECTORS. (a)iiAs soon as practicable after the effective date of the Act enacted by the 80th Legislature, Regular Session, 2007, amending this section, seven initial directors shall be appointed as provided by this section [The directors of the corporation who hold office on the effective date of the Act enacting this chapter shall serve as the temporary directors of the district until successor directors are elected and qualify for office].

(b)iiTo be eligible to be appointed as an initial director, an individual must meet the same requirements as a candidate for an elected position as director under Section 7201.052. The initial directors shall be appointed as follows:

(1)iione director to represent the residents of the district in the City of Mission appointed by the governing body of that city;

(2)iione director to represent the residents of the district in the City of Palmview appointed by the governing body of that city;

(3)iione director to represent the residents of the district in the City of Penitas appointed by the governing body of that city;

(4)iione director to represent the residents of the district in the City of Sullivan City appointed by the governing body of that city; and

(5)iithree directors to represent the residents of the district outside the municipalities listed in Subdivisions (1)-(4) appointed by the Hidalgo County Commissioners Court [The temporary directors of the district are assigned position numbers as follows:

[(1)iiPosition 1, Jose Luis Trigo;

[(2)iiPosition 2, Jose Guadalupe Reyna;

[(3)iiPosition 3, George Barreiro;

[(4)iiPosition 4, Frolian Ramirez;

Saturday, May 26, 2007 SENATE JOURNAL 5119


[(5)iiPosition 5, Russell Wicker;

[(6)iiPosition 6, Benito Salinas;

[(7)iiPosition 7, Manuel Ricardo Garcia;

[(8)iiPosition 8, Valente Alaniz, Jr.; and

[(9)iiPosition 9, Juan Lino Garza].

(c)iiAn initial director serves a term that expires on June 1 of the year in which the director's successor is elected under Section 7201.052 [If there is a vacancy on the temporary board of directors of the district, the temporary board shall appoint a person to fill the vacancy for the remainder of the term for the vacated position until the applicable election under Section 7201.052].

SECTIONi9.08.iiSubchapter B, Chapter 7201, Special District Local Laws Code, is amended by adding Sections 7201.0512 and 7201.0513 to read as follows:

Sec.i7201.0512.iiINITIAL BOARD TRAINING. (a)iiNot later than the 60th day after the first date on which all of the initial directors have been appointed, each initial director shall complete at least 12 hours of training on district management and compliance with laws applicable to the district as determined by the receiver for the corporation.

(b)iiThe district shall reimburse an initial director for the reasonable expenses incurred by the director in attending the training.

Sec.i7201.0513.iiEDUCATION PROGRAM. (a)iiBefore the first election of directors under Section 7201.052, the initial board shall establish a program of education for directors that includes information on:

(1)iithe history of the district;

(2)iithe district's enabling legislation;

(3)iiChapters 49 and 65, Water Code, and other laws that apply to the district, including the requirements of the:

(A)iiopen meetings law, Chapter 551, Government Code; and

(B)iipublic information law, Chapter 552, Government Code;

(4)iirelevant legal developments related to water district governance;

(5)iithe duties and responsibilities of the board;

(6)iithe requirements of conflict of interest laws and other laws relating to public officials; and

(7)iiany applicable ethics policies adopted by the Texas Commission on Environmental Quality or the Texas Ethics Commission.

(b)iiThe district shall pay any costs associated with the development of the education program from district revenue.

(c)iiThe education program may include training provided by an organization offering courses that have been approved by the Texas Commission on Environmental Quality.

(d)iiThe board may adopt bylaws modifying the education program as necessary to meet district needs.

SECTIONi9.09.iiSection 7201.052, Special District Local Laws Code, is amended to read as follows:

Sec.i7201.052.iiBOARD OF DIRECTORS. (a)iiExcept as provided by Subsection (l), the [The] district shall be governed by a board of seven [not fewer than nine and not more than 11] directors, elected as follows:

5120 80th Legislature — Regular Session 68th Day


(1)iione director elected by the voters of the part of the City of Mission inside the district to represent that part of the city;

(2)iione director elected by the voters of the City of Palmview to represent that city;

(3)iione director elected by the voters of the City of Penitas to represent that city;

(4)iione director elected by the voters of the City of Sullivan City to represent that city; and

(5)iithree directors elected at-large to numbered positions on the board by the district voters who do not reside in any of the municipalities listed in Subdivisions (1)-(4) to represent the part of the district that is not included in those municipalities, unless the number of at-large directors is increased under Subsection (l) [in accordance with Section 49.103, Water Code, notwithstanding Subsection (f)(2) of that section].

(b)iiA [Except for a temporary director under Section 7201.051, a] candidate for one of the numbered [a position as] director positions:

(1)ii[is elected at large to represent the entire service area of the district;

[(2)]iimust reside in the part of the service area of the district that is not included in any of the municipalities listed in Subsections (a)(1)-(4); and

(2)i[(3)]iimust be eligible to hold office under Section 141.001, Election Code.

(c)iiA candidate for one of the director positions representing a municipality listed in Subsection (a)(1), (2), (3), or (4):

(1)iimust reside in the municipality the candidate seeks to represent; and

(2)iimust be eligible to hold office under Section 141.001, Election Code.

(d)iiIt is the policy of the district that the directors shall represent and reside in as broad a cross-section of the geographic area of the district as possible.

(e)i[(d)]iiThe district shall fill a vacancy on the board in accordance with Section 49.105, Water Code.

(f)i[(e)]iiExcept for the initial [temporary] directors appointed [listed] under Section 7201.051 or elected at the first election under Subsection (g), directors serve staggered terms of four [three] years.

(g)i[(f)]iiOn the uniform election date in May 2008, or in May 2010, if the election is postponed under Subsection (h), the district shall hold an election to elect seven directors. On the [2006, and on that] uniform election date in May of each even-numbered [every third] year after that date, the district shall hold an election to elect the appropriate number of [three] directors [to serve in positions 1, 4, and 7].

(h)iiThe initial board by order may postpone until the uniform election date in May 2010 the first election for directors under Subsection (g) if the initial board determines that there is not sufficient time to comply with the requirements of law and to order the election of directors to be held on the first uniform election date specified by that subsection.

Saturday, May 26, 2007 SENATE JOURNAL 5121


(i)iiThe directors elected at the first election under Subsection (g) shall cast lots to determine which three directors shall serve terms expiring June 1 of the first even-numbered year after the year in which the directors are elected and which four directors shall serve terms expiring June 1 of the second even-numbered year after the year in which the directors are elected.

(j)iiA director may not serve consecutive terms.

(k)iiA person who has served as a member of the board of directors of the corporation is not eligible to serve as a district director.

(l)iiIf, before the expiration of the term of a director elected to represent a municipality under Subsection (a)(1), (2), (3), or (4), the district determines that all of the incorporated territory of the municipality is outside the boundaries of the district, the position immediately becomes an at-large numbered position to be filled at the next general election of the district in accordance with Subsections (a)(5) and (b) [(g)iiOn the uniform election date in May 2007, and on that uniform election date every third year after that date, the district shall hold an election to elect three directors to serve in positions 2, 3, and 5.

[(h)iiOn the uniform election date in May 2008, and on that uniform election date every third year after that date, the district shall hold an election to elect three directors to serve in positions 6, 8, and 9].

SECTIONi9.10.iiSubchapter B, Chapter 7201, Special District Local Laws Code, is amended by adding Sections 7201.053 and 7201.054 to read as follows:

Sec.i7201.053.iiDISTRICT TREASURER. (a)iiThe board shall elect from among its members one director to serve as district treasurer.

(b)iiThe district treasurer shall comply with the training requirements provided by Section 49.1571, Water Code, for an investment officer of a district.

Sec.i7201.054.iiEDUCATION FOR DIRECTORS. (a)iiExcept for an initial director whose term expires in 2008, each director shall complete the education program established under Section 7201.0513 before the first anniversary of the date on which the director was appointed or elected.

(b)iiThe district shall reimburse a director for the reasonable expenses incurred by the director in attending the education program.

(c)iiA director who is elected to serve a subsequent term shall fulfill the education requirements specified by district bylaws.

SECTIONi9.11.iiSection 7201.206, Special District Local Laws Code, is amended to read as follows:

Sec.i7201.206.iiRATES AND FEES FOR SERVICES. (a)iiThe district, in connection with water or sewer retail public utility services, shall establish lifeline, senior citizen, or minimum consumption level rates for services. The rate impact of such services shall be allocated on the basis of costs of services to achieve conservation principles, while securing necessary reserves for the payment of operating expenses, sinking funds, principal, interest, and debt coverage factors, and any other objective established by the district's annual budget.

5122 80th Legislature — Regular Session 68th Day


(b)iiChapter 395, Local Government Code, does not apply to any fee, charge, or assessment that, before the corporation's dissolution and conversion to a district, is adopted by the receiver for the purpose of generating revenue to fund or recoup the costs of capital improvements or facility expansions necessitated by and attributable to new developments.

(c)iiNotwithstanding Subsection (b), beginning on December 31, 2009, the district may not impose any fee, charge, or assessment that, before the corporation's dissolution and conversion to a district, is adopted by the receiver for the purpose of generating revenue to fund or recoup the costs of capital improvements or facility expansions necessitated by and attributable to new developments unless the district readopts the fee, charge, or assessment or adopts a new fee, charge, or assessment in accordance with Chapter 395, Local Government Code. This subsection does not apply to a retail water or sewer rate adopted by the receiver or the district.

SECTIONi9.12.ii(a)iiExcept for the areas excluded under Subsection (b) of this section, the boundaries of the Agua Special Utility District are as follows:

Beginning at a point in the centerline of FM 495 (Mile 1 Road) a distance of approximately .18 miles west of the intersection of FM 495 and Inspiration Road.

Thence due north approximately 1.0 miles to a point approximately 166 feet south of the centerline of Mile 2 Road and approximately .18 miles west of the intersection of Mile 2 Road and Inspiration Road

Thence follow west along a straight westerly line approximately 180 feet south of Mile 2 Road approximately .51 miles to a point in the centerline of Schubach Road.

Following westerly in a straight line approximately .78 miles to the centerline of Bentsen Palm Drive.

From the point at the centerline of Bentsen Palm Road continue westerly approximately .78 miles to a point at 26 15 00 latitude and -98 22 10 longitude.

Turn right and due north and follow approximately 7.0 miles in a northerly direction .10 miles west and parallel to Bentsen Palm Drive to a point at 226 21 04 latitude and -98 21 06 longitude.

Turn left and follow westerly along a straight line a distance of approximately 1.66 miles to the intersection of Abram Road and 9 Mile Road.

Follow along the centerline of 9 Mile Road westerly approximately 1.65 miles to its intersection with Iowa Avenue. (Latitude: 26 21 31, Longitude: -98 24 16)

Continue westerly along a straight line from latitude 26 21 31, longitude -98 24 16 approximately 3.79 miles to the center line of FM 2221 ( Jara Chinas Road)

Thence due south along FM 2221 ( Jara Chinas Road) approximate distance of 8.02 Miles to a point approximately .75 miles north of the Intersection of Expressway 83 and FM 2221( Jara Chinas Road)

Thence at a distance of approximately .75 miles north of the centerline of Expressway 83 due west to northwest approximately 4 miles following along the same contour as Expressway 83 to the centerline of El Faro Road from a point .62 miles east of the intersection of El Faro Road and Expressway 83.

Turn right and follow due north down the centerline of El Faro Road until its end and continue northerly for a total of approximately 2.79 miles to a point at latitude 26 19 13 and longitude -98 32 40.

Saturday, May 26, 2007 SENATE JOURNAL 5123


Turn left and follow northwesterly in a straight line along the east side of 16 Mile Road (Starr County) approximately 1.87 miles to a point located at 26 19 30 latitude and -98 34 27 longitude.

Turn right and follow northeasterly in a straight line approximately 1.02 miles to a point located at 26 20 22 latitude and -98 34 17 longitude.

Turn right and follow southeasterly in a straight line approximately 1.26 miles to a point located at 26 20 22 latitude and -98 33 05 longitude.

Turn right and follow northeasterly in a straight line along the west side of County Line Road (Starr County) approximately .61 miles to a point located at 26 20 43 latitude and -98 32 60 longitude.

Turn left and follow northwesterly in a straight line approximately 1.26 miles to a point located at 26 20 53 latitude and -98 34 12 longitude.

Turn right and follow northeasterly in a straight line along the east side of 16 Mile Road (Starr County) approximately 1.32 miles to a point located at 26 22 02 latitude and -98 33 59 longitude.

Turn left and follow northwesterly in a straight line approximately .55 miles to a point located at 26 22 07 latitude and -98 34 30 longitude.

Turn left and follow southwesterly in a straight line approximately 6.17 miles to a point located at 26 16 48 latitude and -98 35 29 longitude.

Turn left and follow southeasterly in a straight line approximately .91 miles to a point located at 26 16 30 latitude and -98 34 40 longitude, near the Hidalgo-Starr County line.

Turn right and follow southwesterly along the Hidalgo-Starr County line approximately 1.28 miles to its intersection with the Rio Grande River (U.S. side).

Thence due south approximately 7.77 miles to the northern winding banks (U.S. side) of the Rio Grande River

Thence east along the northern winding banks ( US side ) of the Rio Grande River approximately 22 miles to a point approximately 1.16 miles south of Greene Road

Thence from that center line on Bentsen Park Road approximately .82 miles east northeast to the centerline of Breyfogle/Shuerbach Road

Turn left and follow westerly in a straight line approximately .56 miles to a point located 26 11 20 latitude and -98 22 30 longitude.

Turn left and follow southerly in a straight line approximately .50 miles to the centerline of Miltary Road.

Turn right and follow northerly and then northwesterly along the north side of Military Road approximately .36 miles to its intersection with Farm-to-Market Road 2062.

Turn left and follow southerly along Farm-to-Market Road 2062 approximately .16 miles to a point located at 26 11 02 latitude and -98 22 46 longitude.

Turn right and follow northerly, westerly, southerly, southwesterly, northerly, westerly and then southwesterly for approximately 1.27 miles to a point located at 26 11 11 latitude and -98 23 38 longitude running just north of Park Road 43.

Turn right and follow northeasterly along a straight line for approximately .71 miles to the north side of Military Road.

5124 80th Legislature — Regular Session 68th Day


Turn left and follow along westerly approximately .44 miles along the north side of Military Road to its intersection with Goodwin Road.

Turn right and follow northerly along the centerline of Goodwin Road approximately .33 miles to a point located at 26 12 07 latitude and -98 23 53 longitude.

Turn right and follow easterly, northerly, easterly and then southeasterly approximately .78 miles to the intersection with Green Road.

Turn left and follow northerly along the centerline of Green Road approximately .32 miles.

Turn right and follow easterly and then southwesterly approximately 1.16 miles to the north side of Military Road at points 26 11 42 latitude and -98 23 16 longitude.

Turn left and follow southeasterly along the north side of Military Road approximately 0.07 miles to a point located at 26 11 40 latitude and -98 23 13 longitude.

Turn left and follow northeasterly, northerly, northeasterly, northerly, northeasterly, easterly, southerly and then easterly approximately 2.04 miles to the centerline of Shuebach Road/Airfield Road

Turn left and follow northeasterly along the centerline of Airfield Road approximately 1.48 miles to its intersection with U.S. Highway 83 Business.

Turn right and follow easterly along the centerline of U.S. Highway 83 Business approximately .27 miles to its intersection with Moorefield Road.

Turn left and follow northerly along the centerline of Moorefield Road approximately .32 miles to a point located at 26 13 23 latitude and -98 21 21 longitude.

Make a slight right and follow northeasterly and then northerly along the west banks of the Edinburg Main Canal approximately .66 miles to that point on the centerline of FM 495 the beginning (Mile 1 Road) a distance of approximately .18 miles west of the intersection of FM 495 and Inspiration Road to Close.

(b)iiThe territory of the Agua Special Utility District does not include the area within the city limits of La Joya, Texas, as it existed on January 1, 1991; the area within the Certificate of Convenience and Necessity of Hidalgo County Municipal Utility District No. 1 as reflected on the records of the Texas Commission on Environmental Quality as of January 1, 2007; and the area within the following boundary lines, which lie wholly within the district:

Beginning at a point located at 26 14 57 Latitude and -98 25 55 Longitude follow in a northwesterly direction along an unnamed creek approximately .23 Miles to a point located at 26 15 03 Latitude and -98 26 05 Longitude.

From the point located at 26 15 03 Latitude and -98 26 05 Longitude follow in a westerly direction along an unnamed creek approximately .24 Miles to a point located at 26 15 04 Latitude and -98 26 19 Longitude.

From the point located at 26 15 04 Latitude and -98 26 19 Longitude turn right and follow in a straight line northeasterly approximately .97 Miles to a point located at 26 15 54 Latitude and -98 26 09 Longitude.

From the point located at 26 15 54 Latitude and -98 26 09 Longitude turn right and follow in a straight line easterly-southeasterly approximately .43 Miles to a point located at 26 15 50 Latitude and -98 25 45 Longitude.

Saturday, May 26, 2007 SENATE JOURNAL 5125


From a point located at 26 15 50 Latitude and -98 25 45 Longitude turn right and follow in a straight line southwesterly approximately 1.03 Miles to a point located at 26 14 57 Latitude and -98 25 55 Longitude and Place of Beginning.

SECTIONi9.13.iiInitial directors of the board of the Agua Special Utility District shall be appointed in accordance with Section 7201.051, Special District Local Laws Code, as amended by this Act, as soon as practicable after the effective date of this Act.

SECTIONi9.14.iiExcept as otherwise provided by Chapter 7201, Special District Local Laws Code, as amended by this Act, the Agua Special Utility District is subject to:

(1)iiany judicial or administrative order imposing an injunction against the La Joya Water Supply Corporation that is in effect on the date of the transfer under Section 7201.021, Special District Local Laws Code, as amended by this Act; or

(2)iiany judicial or administrative order imposing liability for monetary damages or a civil or administrative penalty against the La Joya Water Supply Corporation that:

(A)iiresults from a legal proceeding that is pending on the date of the transfer under Section 7201.021, Special District Local Laws Code, as amended by this Act; or

(B)iiis unsatisfied on the date of the transfer under Section 7201.021, Special District Local Laws Code, as amended by this Act.

SECTIONi9.15.ii(a)iiThe legal notice of the intention to introduce the article of this Act that amends Chapter 7201, Special District Local Laws Code, setting forth the general substance of the article, has been published as provided by law, and the notice and a copy of the article have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code.

(b)iiThe governor has submitted the notice and article to the Texas Commission on Environmental Quality.

(c)iiThe Texas Commission on Environmental Quality has filed its recommendations relating to this article with the governor, lieutenant governor, and speaker of the house of representatives within the required time.

(d)iiAll requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this article are fulfilled and accomplished.

SECTIONi9.16.iiThis article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect September 1, 2007.

ARTICLE 10. TRUE RANCH MUNICIPAL UTILITY DISTRICT NO. 1

SECTIONi10.01.iiSubtitle F, Title 6, Special District Local Laws Code, is amended by adding Chapter 8269 to read as follows:

CHAPTER 8269. TRUE RANCH MUNICIPAL UTILITY DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec.i8269.001.iiDEFINITIONS. In this chapter:

(1)ii"Board" means the board of directors of the district.

5126 80th Legislature — Regular Session 68th Day


(2)ii"Director" means a board member.

(3)ii"District" means the True Ranch Municipal Utility District No. 1.

Sec.i8269.002.iiNATURE OF DISTRICT. The district is a municipal utility district in Hays County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.

Sec.i8269.003.iiCONFIRMATION ELECTION REQUIRED. If the creation of the district is not confirmed at a confirmation election held under Section 8269.023 before September 1, 2012:

(1)iithe district is dissolved September 1, 2012, except that:

(A)iiany debts incurred shall be paid;

(B)iiany assets that remain after the payment of debts shall be transferred to Hays County; and

(C)iithe organization of the district shall be maintained until all debts are paid and remaining assets are transferred; and

(2)iithis chapter expires September 1, 2015.

Sec.i8269.004.iiFINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)iiAll land and other property in the district will benefit from the works and projects to be accomplished by the district under powers conferred by Section 59, Article XVI, Texas Constitution.

(b)iiThe district is created to serve a public use and benefit.

Sec.i8269.005.iiINITIAL DISTRICT TERRITORY. (a)iiThe district is initially composed of the territory described by Section 10.02 of the Act creating this chapter.

(b)iiThe boundaries and field notes contained in Section 10.02 of the Act creating this chapter form a closure. A mistake made in the field notes or in copying the field notes in the legislative process does not affect:

(1)iithe organization, existence, or validity of the district;

(2)iithe right of the district to impose taxes;

(3)iithe right of the district to issue bonds, notes, or other indebtedness or to pay the principal of and interest on a bond;

(4)iithe validity of the district's bonds, notes, or other indebtedness; or

(5)iithe legality or operation of the district or the board.

[Sections 8269.006-8269.020 reserved for expansion]

SUBCHAPTER A-1. TEMPORARY PROVISIONS

Sec.i8269.021.iiTEMPORARY DIRECTORS. (a)iiOn or after September 1, 2007, a person who owns land in the district may submit a petition to the Texas Commission on Environmental Quality requesting that the commission appoint as temporary directors the five persons named in the petition.

(b)iiThe commission shall appoint as temporary directors the five persons named in the first petition received by the commission under Subsection (a).

(c)iiIf a temporary director fails to qualify for office or if a vacancy occurs in the office of temporary director, the vacancy shall be filled as provided by Section 49.105, Water Code.

(d)iiTemporary directors serve until the earlier of:

(1)iithe date directors are elected under Section 8269.023; or

(2)iithe date this chapter expires under Section 8269.003.

Saturday, May 26, 2007 SENATE JOURNAL 5127


Sec.i8269.022.iiORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS. As soon as practicable after all the temporary directors have qualified under Section 49.055, Water Code, the directors shall meet at a location in the district agreeable to a majority of the directors. If a location cannot be agreed upon, the meeting shall be at the Hays County Courthouse. At the meeting, the temporary directors shall elect officers from among the temporary directors and conduct any other district business.

Sec.i8269.023.iiCONFIRMATION AND INITIAL DIRECTORS' ELECTION. (a)iiThe temporary directors shall hold an election to confirm the creation of the district and to elect five directors as provided by Section 49.102, Water Code.

(b)iiSection 41.001(a), Election Code, does not apply to a confirmation and initial directors' election held under this section.

Sec.i8269.024.iiINITIAL ELECTED DIRECTORS; TERMS. The directors elected under Section 8269.023 shall draw lots to determine which two serve until the first regularly scheduled election of directors under Section 8269.052 and which three shall serve until the second regularly scheduled election of directors.

Sec.i8269.025.iiDATE OF FIRST REGULARLY SCHEDULED ELECTION OF DIRECTORS. The board by order may postpone the first election under Section 8269.052 following the confirmation and initial directors' election held under Section 8269.023 if:

(1)iithe election would otherwise occur not later than the 60th day after the date on which the confirmation election is held; or

(2)iithe board determines that there is not sufficient time to comply with the requirements of law and to order the election.

Sec.i8269.026.iiEXPIRATION OF SUBCHAPTER. This subchapter expires September 1, 2015.

[Sections 8269.027-8269.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.i8269.051.iiDIRECTORS; TERMS. (a)iiThe district is governed by a board of five directors.

(b)iiDirectors serve staggered four-year terms.

Sec.i8269.052.iiELECTION OF DIRECTORS. On the uniform election date in May of each even-numbered year, the appropriate number of directors shall be elected.

[Sections 8269.053-8269.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.i8269.101.iiGENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created.

Sec.i8269.102.iiMUNICIPAL UTILITY DISTRICT POWERS AND DUTIES. The district has the powers and duties provided by the general law of this state, including Chapters 49 and 54, Water Code, applicable to municipal utility districts created under Section 59, Article XVI, Texas Constitution.

Sec.i8269.103.iiROAD PROJECTS. (a)iiTo the extent authorized by Section 52, Article III, Texas Constitution, the district may construct, acquire, improve, maintain, or operate arterials or main feeder roads or improvements in aid of those roads.

5128 80th Legislature — Regular Session 68th Day


(b)iiA road project must meet all applicable construction standards, zoning and subdivision requirements, and regulatory ordinances of the municipality or county in whose jurisdiction the district is located.

Sec.i8269.104.iiCOMPLIANCE WITH MUNICIPAL CONSENT ORDINANCES OR RESOLUTIONS. Subject to the limitations of Section 54.016, Water Code, the district shall comply with all valid and applicable requirements of any ordinance or resolution adopted by a municipality in the corporate limits or extraterritorial jurisdiction of which the district is located, including an ordinance or resolution adopted before September 1, 2007, that consents to the creation of the district or to the inclusion of lands within the district.

[Sections 8269.105-8269.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.i8269.151.iiELECTIONS REGARDING TAXES OR BONDS. (a)iiExcept as provided by Section 8269.201(b), the district may issue, without an election, bonds and other obligations secured by revenue or contract payments from any source other than ad valorem taxation.

(b)iiThe district must hold an election in the manner provided by Chapters 49 and 54, Water Code, to obtain voter approval before the district may impose an operation and maintenance tax or issue bonds payable from ad valorem taxes.

Sec.i8269.152.iiOPERATION AND MAINTENANCE TAX. (a)iiIf authorized at an election held under Section 8269.151, the district may impose an operation and maintenance tax on taxable property in the district in accordance with Section 49.107, Water Code.

(b)iiThe board shall determine the tax rate. The rate may not exceed the rate approved at the election.

[Sections 8269.153-8269.200 reserved for expansion]

SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS

Sec.i8269.201.iiAUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS. (a)iiThe district may issue bonds or other obligations payable wholly or partly from ad valorem taxes, impact fees, revenue, grants, or other district money, or any combination of those sources, to pay for any authorized district purpose.

(b)iiThe district may not issue bonds to finance projects authorized by Section 8269.103 unless the issuance is approved by a vote of a two-thirds majority of the voters of the district voting at an election called for that purpose.

(c)iiBonds or other obligations issued or incurred to finance projects authorized by Section 8269.103 may not exceed one-fourth of the assessed value of the real property in the district.

Sec.i8269.202.iiTAXES FOR BONDS. At the time bonds payable wholly or partly from ad valorem taxes are issued:

(1)iithe board shall impose a continuing direct annual ad valorem tax, without limit as to rate or amount, for each year that all or part of the bonds are outstanding; and

(2)iithe district annually shall impose an ad valorem tax on all taxable property in the district in an amount sufficient to:

(A)iipay the interest on the bonds as the interest becomes due;

Saturday, May 26, 2007 SENATE JOURNAL 5129


(B)iicreate a sinking fund for the payment of the principal of the bonds when due or the redemption price at any earlier required redemption date; and

(C)iipay the expenses of imposing the taxes.

SECTIONi10.02.iiThe True Ranch Municipal Utility District No. 1 includes all the territory contained in the following area:

BEING ALL THAT CERTAIN TRACT OR PARCEL OF LAND CONTAINING 465.71 ACRES, MORE OR LESS, OF LAND AREA IN THE JOHN INGRAIM SURVEY, ABSTRACT NO. 256, HAYS COUNTY, TEXAS, BEING A PORTION OF THAT TRACT DESCRIBED AS 1279.69 ACRES IN A DEED FROM LESLIE TRUE VESPER ET AL TO LESLIE TRUE VESPER DATED AUGUST 10, 1992 AND RECORDED IN VOLUME 948, PAGE 789 OF THE HAYS COUNTY OFFICIAL PUBLIC RECORDS, AND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:

BEGINNING at a ½" iron rod found in the southwest line of R.M. Highway No. 2325 and that tract described as an 80' R.O.W. in a deed from Cecil H. Hale, et al to the State of Texas dated August 29, 1956 and recorded in Volume 169, Page 304 of the Hays County Deed Records for the most northerly northwest corner of the panhandle portion of this description and the Vesper 1279.69 acre tract and east corner of that tract described as 592.30 acres in a deed from Leslie True Vesper et al to Ameritrust Texas, N.A., Trustee dated August 10, 1992 and recorded in Volume 949, Page 572 of the Hays County Official Public Records, from which a TXDOT concrete monument found bears N 69845'42" W 162.75 feet;

THENCE leaving the Ameritrust Texas 592.30 acre tract and the PLACE OF BEGINNING as shown on that plat numbered 24587-06-3-d dated May 30, 2006 prepared for Leslie Vesper by Byrn & Associates, Inc., of San Marcos, Texas with the common northeast line of the Vesper 1279.69 acre tract and southwest line of R.M. Highway No. 2325 and the State of Texas 80' R.O.W. tract S 69848'34" E 599.94 feet to a ½" iron rod set for the northwest corner of that tract described as "Tract 1-1.00 acres" in a deed from Thomas W. Slaughter et ux to Randy C. Brown et ux dated February 12, 1996 and recorded in Volume 1206, Page 780 of the Hays County Official Public Records, from which A TXDOT concrete monument found bears S 69847'57" E 120.11 feet;

THENCE leaving R.M. Highway No. 2325 and the State of Texas 80' R.O.W. tract with the common east line of the Vesper 1279.69 acre tract and west and south lines of the Brown 1.00 acre Tract 1 the following two courses:

1. S 20806'33" W 226.56 feet to a 2.5" pipe fence corner post found for corner, and

S 69841'58" E 234.42 feet to a 2" pipe fence corner post found in the west line of that tract described as "Tract 2-5.347 acres" in the previously mentioned deed to Randy C. Brown et ux for the southeast comer of the Brown 1.00 acre Tract 1;

THENCE leaving the Brown 1.00 acre Tract 1 and continuing with the common east line of the Vesper 1279.69 acre tract and west line of the Brown 5.347 acre Tract 2, as fenced and used, the following three courses:

S 00810'12" E 410.74 feet to a ½" iron rod set at the approximate centerline of an underground pipeline for angle point,

S 00804'22" E 196.11 feet to a 2.5" pipe fence post found for angle point, and

5130 80th Legislature — Regular Session 68th Day


S 00824'09" E 15.83 feet to an iron rod found with an aluminum cap stamped "Pro-Tech Eng" at fence corner for the southwest corner of the Brown 5.347 acre Tract 2 and northwest corner of the remaining portion of that tract described as 187.78 acres in a deed from Henry Polvado & Lillie Polvado to Wesley Springs dated May 6, 1983 and recorded in Volume 393, Page 570 of the Hays County Deed Records (the Brown 5.347 acre Tract 2 being a portion of the Springs 187.78 acre tract);

THENCE leaving the Brown 5.347 acre Tract 2 and continuing with the east line of the Vesper 1279.69 acre tract and west line of the Springs 187.78 acre tract, as fenced and used, the following three courses:

S 00800'57" E 1012.24 feet to a 2.5" pipe fence post found for angle point,

S 00806'57" W 908.05 feet to a 4" pipe fence corner post found for angle point, and

S 00803'12" E 354.80 feet to a 4" pipe fence corner post found for the southwest corner of the springs 187.78 acre tract and northwest corner of that tract described as 126.97 acres in a deed from Stanual W. Farris to the Stanual W. Farris Living Trust dated March 10, 2005 and recorded in Volume 2646, Page 385 of the Hays County Official Public Records;

THENCE leaving the Springs 187.78 acre tract and continuing with the common east line of the Vesper 1279.69 acre tract and west line of Farris Living Trust 126.97 acre tract, as fenced and used, the following three courses:

S 00812'25" W 952.36 feet to a 4" pipe fence post found for angle point,

S 00809'57"W 1087.12 feet to a 4" cedar post found for angle point, and

S 00822'11" W 1072.11 feet to a ½" iron rod found at fence corner for the southwest corner of the Farris Living Trust 126.97 acre tract and northwest corner of that tract described as 32.03 acres in a deed from Phil Harris to Shannon Harris dated April 8, 1998 and recorded in Volume 1463, Page 335 of the Hays County Official Public Records;

THENCE leaving the Farris Living Trust 126.97 acre tract and continuing with the common east line of the Vesper 1279.69 acre tract and west line of the Shannon Harris 32.03 acre tract, as fenced and used, S 00844'10"W 120.44 feet to a 4" cedar fence corner post found for the southwest corner of the Shannon Harris 32.03 acre tract and northwest corner of that tract described as 28.92 acres in a deed from A.J. Farris et ux to Philip D. Farris dated July 18, 1991 and recorded in Volume 882, page 620 of the Hays County Official Public Records;

THENCE leaving the Shannon Harris 32.03 acre tract and continuing with the common east line of the Vesper 1279.69 acre tract and west line of the Philip D. Farris 28.92 acre tract, as fenced and used, S 00824'02" W 279.19 feet to a ½" iron rod found at fence corner for the southeast corner of this description and northeast corner of that tract described as 52.30 acres in a deed from Leslie True Vesper to Paul R. Eastup et ux dated June 5, 1996 and recorded in Volume 1240, Page 309 of the Hays County Official Public Records (the Eastup 52.30 acre tract being a portion of the Vesper 1279.69 acre tract);

THENCE leaving the Phillip D. Farris 28.92 acre tract and entering the Vesper 1279.69 acre tract with the north line of the Eastup 52.30 acre tract, N 87810'57" W 1356.38 feet to a ½" iron rod found in fence for the northwest corner of the Eastup 52.03 acre tract and northeast corner of that tract described as 209.16 acres in a deed

Saturday, May 26, 2007 SENATE JOURNAL 5131


from Leslie True Vesper to James Nicholas Edwards and Lynn S. Edwards dated July 6, 2005 and recorded in Volume 2719, Page 740 of the Hays County Official Public Record (the Edwards 209.16 acre tract being a portion of the Vesper 1279.69 acre tract);

THENCE leaving the Eastup 52.30 acre tract with the north line of the Edwards 209.16 acre tract, as fenced and used, the following five courses:

N 87819'31" W 665.61 feet to a 4" pipe fence post found for angle point,

N 86858'45" W 535.67 feet to a 3" cedar fence post found for angle point,

N 87809'05" W 302.22 feet to a 3" cedar fence post found for angle point,

N 87826'23" W 724.92 feet to a 4" cedar fence post found for angle point, and

N 86846'01" W 426.90 feet to a ½" iron rod found with a plastic cap stamped "Byrn Survey" in the east line of that tract described as 504.13 acres in a deed from Leslie True Vesper to James L. Pierce and David L. Pierce dated February 8, 1999 and recorded in Volume 1500, Page 452 of the Hays County Official Public Records (the Pierce 504.13 acre tract being a portion of the Vesper 1279.69 acre tract);

THENCE leaving the Edwards 209.16 acre tract with the east line of the Pierce 504.13 acre tract the following two courses:

N 08819'22" E 124.79 feet to a ½" iron rod found with a plastic cap stamped "Byrn Survey" for corner, and

N 87841'56" W 751.30 feet to a ½" iron rod found with a plastic cap stamped "Byrn Survey" for the southwest corner of this description, an interior corner in the east line of the Pierce 504.13 acre tract, and the south corner of that tract described as 10.59 acres in a deed from Leslie True Vesper to James L. Pierce and David L. Pierce dated June 15, 2001 and recorded in Volume 1872, Page 802 of the Hays County Official Public Records (the Pierce 10.59 acre tract being a portion of the Vesper 1279.69 acre tract);

THENCE leaving the Pierce 504.13 acre tract with the east line of Pierce 10.59 acre tract the following two courses:

N 05837'42" E (being the bearing basis for description) 734.58 feet to a ½" iron rod found with a plastic cap stamped "Byrn Survey" for angle point, and

N 16812'16" E 1026.26 feet to a 16" cedar tree stump found in fence in the east line of the previously mentioned Pierce 504.13 acre tract for the north corner of the Pierce 10.59 acre tract;

THENCE leaving the Pierce 10.59 acre tract and continuing with the east line of the Pierce 504.13 acre tract, as fenced and used, the following eight courses:

N 20834'38" E 42.67 feet to a 16" cedar tree stump found for angle point,

N 15843'09" E 241.85 feet to a 12" cedar tree stump found for angle point,

N 08841'46" E 86.90 feet to a 14" cedar tree stump found for angle point,

N 07833'58" E 244.38 feet to a 2.5" pipe fence post found for angle point,

N 24814'46" E 623.77 feet to a 6" cedar fence post found for angle point,

N 24815'46" E 420.45 feet to a 2.5" pipe fence post found for angle point,

N 12852'45" E 194.02 feet to a 2.5" pipe fence post found for angle point, and

N 01830'08" E 340.55 feet to a 4" pipe fence corner post found in the south line of the previously mentioned Ameritrust Texas 592.30 acre tract and north line of the Vesper 1279.69 acre tract for the northeast corner of the Pierce 504.13 acre tract and exterior west corner of this description;

5132 80th Legislature — Regular Session 68th Day


THENCE leaving the Pierce 504.13 acre tract with the common north line of the Vesper 1279.69 acre tract, and south line of the Ameritrust Texas 592.30 acre tract, as fenced and used, the following six courses:

N 73832'00" E 130.18 feet to a 4" pipe fence post found for angle point,

S 48836'36" E 170.02 feet to a ½" iron rod found for angle point,

S 76817'07" E 88.03 feet to a 4" pipe fence post found for angle point,

S 86844'44" E 798.24 feet to a 4" pipe fence post found for angle point,

S 86855'19" E 913.16 feet to a 4" pipe fence post found for angle point, and

S 86856'50" E 421.51 feet to a ½" iron rod found for the southeast corner of the Ameritrust Texas 592.30 acre tract and southwest corner of the panhandle portion of this description and the Vesper 1279.69 acre tract;

THENCE leaving the fence with the common west line of the panhandle portion of the Vesper 1279.69 acre tract and east line of the Ameritrust Texas 592.30 acre tract the following two courses:

N 00800'32" E 1999.62 feet to a ½" iron rod found for angle point, and

N 32823'54" E 1152.96 feet to the PLACE OF BEGINNING.

THERE are contained within these metes and bounds 465.71 acres, more or less, as prepared from public records and surveys made on the ground in 1999, 2001, 2005 and on May 30, 2006 by Byrn & Associates, Inc., of San Marcos, Texas. All ½" iron rods set are capped with a plastic cap stamped "Byrn Survey".

SECTIONi10.03.ii(a)iiThe legal notice of the intention to introduce this article, setting forth the general substance of this article, has been published as provided by law, and the notice and a copy of this article have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code.

(b)iiThe governor, one of the required recipients, has submitted the notice and article to the Texas Commission on Environmental Quality.

(c)iiThe Texas Commission on Environmental Quality has filed its recommendations relating to this article with the governor, the lieutenant governor, and the speaker of the house of representatives within the required time.

(d)iiAll requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this article are fulfilled and accomplished.

SECTIONi10.04.iiThis article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect September 1, 2007.

ARTICLE 11. TABLEROCK GROUNDWATER CONSERVATION DISTRICT

SECTIONi11.01.iiSubtitle H, Title 6, Special District Local Laws Code, is amended by adding Chapter 8823 to read as follows:

CHAPTER 8823. TABLEROCK GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.i8823.001.iiDEFINITIONS. In this chapter:

(1)ii"Board" means the district's board of directors.

(2)ii"Director" means a board member.

(3)ii"District" means the Tablerock Groundwater Conservation District.

Saturday, May 26, 2007 SENATE JOURNAL 5133


Sec.i8823.002.iiNATURE OF DISTRICT. The district is a groundwater conservation district in Coryell County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.

Sec.i8823.003.iiCONFIRMATION ELECTION REQUIRED. (a)iiIf the creation of the district is not confirmed at a confirmation election held before September 1, 2012:

(1)iithe district is dissolved on September 1, 2012, except that the district shall:

(A)iipay any debts incurred;

(B)iitransfer to Coryell County any assets that remain after the payment of debts; and

(C)iimaintain the organization of the district until all debts are paid and remaining assets are transferred; and

(2)iithis chapter expires September 1, 2012.

(b)iiThis section expires September 1, 2012.

Sec.i8823.004.iiINITIAL DISTRICT TERRITORY. The initial boundaries of the district are coextensive with the boundaries of Coryell County, Texas.

Sec.i8823.005.iiCONSTRUCTION OF CHAPTER. This chapter shall be liberally construed to achieve the legislative intent and purposes of Chapter 36, Water Code. A power granted by Chapter 36, Water Code, or this chapter shall be broadly interpreted to achieve that intent and those purposes.

Sec.i8823.006.iiAPPLICABILITY OF OTHER GROUNDWATER CONSERVATION DISTRICT LAW. Except as otherwise provided by this chapter, Chapter 36, Water Code, applies to the district.

[Sections 8823.007-8823.020 reserved for expansion]

SUBCHAPTER A-1. TEMPORARY PROVISIONS

Sec.i8823.021.iiAPPOINTMENT OF TEMPORARY DIRECTORS. (a)iiNot later than the 45th day after the effective date of this chapter, five temporary directors shall be appointed as follows:

(1)iithe Coryell County Commissioners Court shall appoint one temporary director from each of the four commissioners precincts in the county to represent the precincts in which the temporary directors reside; and

(2)iithe county judge of Coryell County shall appoint one temporary director who resides in the district to represent the district at large.

(b)iiIf there is a vacancy on the temporary board, the authority who appointed the temporary director whose position is vacant shall appoint a person to fill the vacancy.

(c)iiTemporary directors serve until the earlier of:

(1)iithe time the temporary directors become initial directors as provided by Section 8823.024; or

(2)iithe date this chapter expires under Section 8823.003.

Sec.i8823.022.iiORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS. As soon as practicable after all the temporary directors have qualified under Section 36.055, Water Code, a majority of the temporary directors shall convene the organizational meeting of the district at a location within the district agreeable to a majority of the directors. If an agreement on location cannot be reached, the organizational meeting shall be at the Coryell County Courthouse.

5134 80th Legislature — Regular Session 68th Day


Sec.i8823.023.iiCONFIRMATION ELECTION. (a)iiThe temporary directors shall hold an election to confirm the creation of the district.

(b)iiSection 41.001(a), Election Code, does not apply to a confirmation election held as provided by this section.

(c)iiExcept as provided by this section, a confirmation election must be conducted as provided by Sections 36.017(b), (c), and (e)-(i), Water Code, and the Election Code. Section 36.017(d), Water Code, does not apply to the confirmation election.

(d)iiThe ballot for the election must be printed in accordance with the Election Code and provide for voting for or against the proposition: "The creation of the Tablerock Groundwater Conservation District and the imposition of a maintenance tax at a rate not to exceed two cents on each $100 of assessed valuation of taxable property in the district."

(e)iiIf a majority of the votes cast at the election are not in favor of the creation of the district, the temporary directors may hold a subsequent confirmation election. The subsequent election may not be held before the first anniversary of the date on which the previous election was held.

(f)iiThe district may not impose a maintenance tax unless a majority of the votes cast at the election are in favor of the imposition of the maintenance tax.

Sec.i8823.024.iiINITIAL DIRECTORS. (a)iiIf creation of the district is confirmed at an election held under Section 8823.023, the temporary directors become the initial directors and serve for the terms provided by Subsection (b).

(b)iiThe initial directors representing commissioners precincts 2 and 4 serve until the election of directors under Section 8823.025, and the initial directors representing commissioners precincts 1 and 3 and the at-large director serve until the next regularly scheduled election of directors under Section 8823.053.

Sec.i8823.025.iiINITIAL ELECTION OF DIRECTORS. On the uniform election date in November of the first even-numbered year after the year in which the creation of the district is confirmed at an election held under Section 8823.023, the district shall hold an election of two directors to replace the initial directors who, under Section 8823.024(b), serve until that election.

Sec.i8823.026.iiEXPIRATION OF SUBCHAPTER. This subchapter expires September 1, 2012.

[Sectionsi8823.027-8823.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.i8823.051.iiDIRECTORS; TERMS. (a)iiThe district is governed by a board of five directors.

(b)iiDirectors serve staggered four-year terms.

Sec.i8823.052.iiMETHOD OF ELECTING DIRECTORS. One director is elected from each county commissioners precinct in Coryell County and one director is elected at large.

Sec.i8823.053.iiELECTION DATE. The district shall hold an election in the district to elect directors on the uniform election date in November of each even-numbered year.

Sec.i8823.054.iiQUALIFICATIONS FOR ELECTION. (a)iiTo be qualified for election as a director, a person must reside in the district.

Saturday, May 26, 2007 SENATE JOURNAL 5135


(b)iiTo be qualified for election as a director from a precinct, a person must reside in that precinct.

[Sections 8823.055-8823.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec.i8823.101.iiGROUNDWATER CONSERVATION DISTRICT POWERS AND DUTIES. Except as provided by this chapter, the district has the powers and duties provided by the general law of this state, including Chapter 36, Water Code, and Section 59, Article XVI, Texas Constitution, applicable to groundwater conservation districts.

Sec.i8823.102.iiREGISTRATION AND REPORTING REQUIREMENTS FOR CERTAIN EXEMPT WELLS. The district may adopt rules that require the owner or operator of a well or class of wells exempt from permitting under Section 36.117, Water Code, to register the well with the district and, if the well is not exempt under Section 36.117(b)(1), Water Code, to report groundwater withdrawals from the well using reasonable and appropriate reporting methods and frequency.

Sec.i8823.103.iiWELL SPACING RULES; EXEMPTIONS. (a)iiExcept as provided by Subsection (b), the district shall exempt from the well spacing requirements adopted by the district any well that is completed on or before the effective date of those requirements.

(b)iiThe district may provide by rule that a well may lose its exemption under this section if the well is modified in a manner that substantially increases the capacity of the well after the effective date of the well spacing requirements adopted by the district.

(c)iiExcept as provided by this section, the district may require any well or class of wells exempt from permitting under Chapter 36, Water Code, to comply with the well spacing requirements adopted by the district. The district shall apply well spacing requirements uniformly to any well or class of wells based on the size or capacity of the well and without regard to the type of use of the groundwater produced by the well.

Sec.i8823.104.iiADOPTION OF RULES AND ISSUANCE OF PERMITS. Before the district adopts a management plan, the district may adopt rules and issue permits.

Sec.i8823.105.iiCONTRACTS WITH OTHER GOVERNMENTAL ENTITIES. (a)iiThe district and another governmental entity, including a river authority located in the district, may contract for the performance by that entity of a district function.

(b)iiThe district may accept a loan from Coryell County to pay for any initial costs of the district, including costs related to a confirmation election.

Sec.i8823.106.iiNO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain.

Sec.i8823.107.iiDISTRICT TERRITORY REQUIREMENTS; DISSOLUTION OF DISTRICT. (a)iiOn September 1, 2011, the district boundaries must include at least one county adjacent to Coryell County.

(b)iiAs soon as practicable after September 1, 2011, the Texas Commission on Environmental Quality shall determine whether the district complies with Subsection (a).

5136 80th Legislature — Regular Session 68th Day


(c)iiIf the Texas Commission on Environmental Quality determines that the district does not comply with Subsection (a), the commission shall dissolve the district in accordance with Sections 36.304, 36.305, 36.307, 36.308, 36.309, and 36.310, Water Code, regardless of whether the district meets the criteria for dissolution under Section 36.304(a), Water Code.

(d)iiThis section expires September 1, 2013.

[Sections 8823.108-8823.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec.i8823.151.iiREVENUE. To pay the maintenance and operating costs of the district and to pay any bonds or notes issued by the district, the district may:

(1)iiimpose an ad valorem tax at a rate that:

(A)iiis approved by a majority of district voters voting at an election held for that purpose; and

(B)iidoes not exceed two cents on each $100 of assessed valuation of taxable property in the district;

(2)iiassess fees for services or for water withdrawn from nonexempt wells; or

(3)iisolicit and accept grants from any private or public source.

[Sections 8823.152-8823.200 reserved for expansion]

SUBCHAPTER E. DISSOLUTION

Sec.i8823.201.iiELECTION FOR DISSOLUTION. (a)iiIf the district has no outstanding bond or other long-term indebtedness, the district may be dissolved by a favorable vote of a majority of the registered voters of the district at an election held for that purpose.

(b)iiThe board shall hold a dissolution election if the board receives a petition for dissolution signed by at least 50 percent of the registered voters in the district as computed by using the list of registered voters for Coryell County.

(c)iiIf the district is dissolved under this section, the board shall:

(1)iinotify the Texas Commission on Environmental Quality and the secretary of state of the dissolution; and

(2)iitransfer title to any assets of the district to Coryell County.

SECTIONi11.02.ii(a)iiThe legal notice of the intention to introduce this article, setting forth the general substance of this article, has been published as provided by law, and the notice and a copy of this article have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code.

(b)iiThe governor has submitted the notice and article to the Texas Commission on Environmental Quality.

(c)iiThe Texas Commission on Environmental Quality has filed its recommendations relating to this article with the governor, lieutenant governor, and speaker of the house of representatives within the required time.

(d)iiAll requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this article are fulfilled and accomplished.

Saturday, May 26, 2007 SENATE JOURNAL 5137


ARTICLEi12.iiEDWARDS AQUIFER AUTHORITY

SECTIONi12.01.iiSection 1.11, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, is amended by amending Subsection (f) and adding Subsections (f-1) and (f-2) to read as follows:

(f)iiThe authority may own, finance, design, [contract with a person who uses water from the aquifer for the authority or that person to] construct, operate, or [own, finance, and] maintain recharge [water supply] facilities. [Management fees or special fees may not be used for purchasing or operating these facilities.] For the purpose of this subsection, "recharge [water supply] facility" means [includes] a dam, reservoir, [treatment facility, transmission facility,] or other method of recharge project and associated facilities, structures, or works but does not include a facility to recirculate water at Comal or San Marcos Springs.

(f-1)iiThe authority shall provide written notice of the intent to own, finance, design, construct, operate, or maintain recharge facilities to:

(1)iieach groundwater conservation district in the area in which the recharge facility will be located;

(2)iithe mayor of each municipality in the area in which the recharge facility will be located;

(3)iithe county judge of each county in the area in which the recharge facility will be located; and

(4)iieach member of the legislature who represents the area in which the proposed recharge facility will be located.

(f-2)iiAny entity within the county in which a recharge facility is to be constructed shall be provided opportunity for input and allowed to provide proposals for partnering with the authority to own, finance, design, construct, operate, or maintain the recharge facility.

SECTIONi12.02.iiSubsections (a), (c), (e), (f), and (h), Section 1.14, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, are amended to read as follows:

(a)iiAuthorizations to withdraw water from the aquifer and all authorizations and rights to make a withdrawal under this Act shall be limited in accordance with this section to:

(1)iiprotect the water quality of the aquifer;

(2)iiprotect the water quality of the surface streams to which the aquifer provides springflow;

(3)iiachieve water conservation;

(4)iimaximize the beneficial use of water available for withdrawal from the aquifer;

(5)iirecognize the extent of the hydro-geologic connection and interaction between surface water and groundwater;

(6)iiprotect aquatic and wildlife habitat;

(7)i[(6)]iiprotect species that are designated as threatened or endangered under applicable federal or state law; and

(8)i[(7)]iiprovide for instream uses, bays, and estuaries.

5138 80th Legislature — Regular Session 68th Day


(c)iiExcept as provided by Subsections [(d),] (f)[,] and (h) of this section and Section 1.26 of this article, for the period beginning January 1, 2008, the amount of permitted withdrawals from the aquifer may not exceed or be less than 572,000 [400,000] acre-feet of water for each calendar year, which is the sum of all regular permits issued or for which an application was filed and issuance was pending action by the authority as of January 1, 2005.

(e)iiThe authority may not allow withdrawals from the aquifer through wells drilled after June 1, 1993, except for replacement, test, or exempt wells or to the extent that the authority approves an amendment to an initial regular permit to authorize a change in the point of withdrawal under that permit [additional water as provided by Subsection (d) and then on an interruptible basis].

(f)iiIf the level of the aquifer is equal to or greater than 660 [650] feet above mean sea level as measured at Well J-17, the authority may authorize withdrawal from the San Antonio pool, on an uninterruptible basis, of permitted amounts. If the level of the aquifer is equal to or greater than 845 feet at Well J-27, the authority may authorize withdrawal from the Uvalde pool, on an uninterruptible basis, of permitted amounts. [The authority shall limit the additional withdrawals to ensure that springflows are not affected during critical drought conditions.]

(h)iiTo accomplish the purposes of this article, [by June 1, 1994,] the authority, through a program, shall implement and enforce water management practices, procedures, and methods to ensure that, not later than December 31, 2012, the continuous minimum springflows of the Comal Springs and the San Marcos Springs are maintained to protect endangered and threatened species to the extent required by federal law and to achieve other purposes provided by Subsection (a) of this section and Section 1.26 of this article. The authority from time to time as appropriate may revise the practices, procedures, and methods. To meet this requirement, the authority shall require:

(1)iiphased adjustments to [reductions in] the amount of water that may be used or withdrawn by existing users or categories of other users, including adjustments in accordance with the authority's critical period management plan established under Section 1.26 of this article; or

(2)iiimplementation of alternative management practices, procedures, and methods.

SECTIONi12.03.iiSubsection (g), Section 1.16, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, is amended to read as follows:

(g)iiThe authority shall issue an initial regular permit without a term, and an initial regular permit remains in effect until the permit is abandoned or[,] cancelled[, or retired].

SECTIONi12.04.iiSubsection (b), Section 1.19, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, is amended to read as follows:

(b)iiWithdrawal of water under a term permit must be consistent with the authority's critical period management plan established under Section 1.26 of this article. A holder of a term permit may not withdraw water from the San Antonio pool of the aquifer unless:

(1)iithe level of the aquifer is higher than 675 [665] feet above sea level, as measured at Well J-17;

Saturday, May 26, 2007 SENATE JOURNAL 5139


(2)iithe flow at Comal Springs as determined by Section 1.26(c) of this article is greater than 350 cubic feet per second; and

(3)iithe flow at San Marcos Springs as determined by Section 1.26(c) of this article is greater than 200 cubic feet per second.

SECTIONi12.05.iiSubsection (a), Section 1.22, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, is amended to read as follows:

(a)iiThe authority may acquire permitted rights to use water from the aquifer for the purposes of:

(1)iiholding those rights in trust for sale or transfer of the water or the rights to persons within the authority's jurisdiction who may use water from the aquifer;

(2)iiholding those rights in trust as a means of managing overall demand on the aquifer; or

(3)iiholding those rights for resale [or retirement as a means of complying with pumping reduction requirements under this article; or

[(4)iiretiring those rights, including those rights already permitted].

SECTIONi12.06.iiArticle 1, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, is amended by amending Section 1.26 and adding Section 1.26A to read as follows:

Sec.i1.26.iiCRITICAL PERIOD MANAGEMENT PLAN. (a)iiAfter review of the recommendations received in the program document, as prescribed by Section 1.26A of this article, the [The] authority by rule shall adopt [prepare and coordinate implementation of] a [plan for] critical period management plan consistent with Sections 1.14(a), (f), and (h) of this article [on or before September 1, 1995]. The critical period management plan shall be adopted by the authority no later than six months after the authority's receipt of the program document. On adoption of the critical period management plan, the authority shall provide a written report to the governor, lieutenant governor, and speaker of the house of representatives describing the actions taken in response to each recommendation and, for each recommendation not implemented, the reason it was not implemented. The plan [mechanisms] must:

(1)iidistinguish between discretionary use and nondiscretionary use;

(2)iirequire reductions of all discretionary use to the maximum extent feasible;

(3)iirequire utility pricing, to the maximum extent feasible, to limit discretionary use by the customers of water utilities; [and]

(4)iirequire reduction of nondiscretionary use by permitted or contractual users, to the extent further reductions are necessary, in the reverse order of the following water use preferences:

(A)iimunicipal, domestic, and livestock;

(B)iiindustrial and crop irrigation;

(C)iiresidential landscape irrigation;

(D)iirecreational and pleasure; and

(E)iiother uses that are authorized by law; and

(5)iiallow irrigation use to continue in order to permit the user to complete the irrigation of a crop in progress.

5140 80th Legislature — Regular Session 68th Day


(b)iiIn this section, "MSL" means the elevation above mean sea level, measured in feet, of the surface of the water in a well, and "CFS" means cubic feet per second. Not later than January 1, 2008, the authority shall, by rule, adopt and enforce a critical period management plan with withdrawal reduction percentages in the amounts indicated in Tables 1 and 2 whether according to the index well levels or the Comal or San Marcos Springs flow as applicable, for a total in critical period Stage IV of 40 percent of the permitted withdrawals under Table 1 and 35 percent under Table 2:

TABLE 1

CRITICAL PERIOD WITHDRAWAL REDUCTION STAGES

FOR THE SAN ANTONIO POOL

Comal Springs
Flow cfs
San Marcos
Springs Flow
cfs
Index Well J-17 Level MSL Critical Period
Stage
Withdrawal Reduction- San Antonio Pool
5225 596 5660 I 20%
5200 580 5650 II 30%
5150 N/A 5640 III 35%
5100 N/A 5630 IV 40%

TABLE 2

CRITICAL PERIOD WITHDRAWAL REDUCTION STAGES

FOR THE UVALDE POOL

Withdrawal Reduction-Uvalde Pool Index Well J-27 Level MSL Critical Period Stage
N/A I
5% 5850 II
20% 5845 III
35% 5842 IV

(c)iiA change to a critical period stage with higher withdrawal reduction percentages is triggered if the 10-day average of daily springflows at the Comal Springs or the San Marcos Springs or the 10-day average of daily aquifer levels at the J-17 Index Well drops below the lowest number of any of the trigger levels indicated in Table 1. A change to a critical period stage with lower withdrawal reduction percentages is triggered only when the 10-day average of daily springflows at the Comal Springs and the San Marcos Springs and the 10-day average of daily aquifer levels at the J-17 Index Well are all above the same stage trigger level. The authority may adjust the withdrawal percentages for Stage IV in Tables 1 and 2 if necessary in order to comply with Subsection (d) or (e) of this section.

(d)iiBeginning September 1, 2007, the authority may not require the volume of permitted withdrawals to be less than an annualized rate of 340,000 acre-feet, under critical period Stage IV.

(e)iiAfter January 1, 2013, the authority may not require the volume of permitted withdrawals to be less than an annualized rate of 320,000 acre-feet, under critical period Stage IV unless, after review and consideration of the recommendations provided under Section 1.26A of this article, the authority determines that a different volume of withdrawals is consistent with Sections 1.14(a), (f), and (h) of this article in maintaining protection for federally listed threatened and endangered species associated with the aquifer to the extent required by federal law.

Saturday, May 26, 2007 SENATE JOURNAL 5141


(f)iiNotwithstanding Subsections (d) and (e) of this section, the authority may require further withdrawal reductions before reviewing and considering the recommendations provided under Section 1.26A of this article if the discharge of Comal Springs or San Marcos Springs declines an additional 15 percent after Stage IV withdrawal reductions are imposed under Subsection (b) of this section. This subsection expires on the date that critical period management plan rules adopted by the authority based on the recommendations provided under Section 1.26A of this article take effect.

(g)iiNotwithstanding the existence of any stage of an interim or final critical period adopted by the authority under this section, a person authorized to withdraw groundwater from the aquifer for irrigation purposes shall, without regard to the withdrawal reductions prescribed for that stage, be allowed to finish a crop already planted in the calendar year during which the critical period is in effect.

Sec.i1.26A.iiDEVELOPMENT OF WITHDRAWAL REDUCTION LEVELS AND STAGES FOR CRITICAL PERIOD MANAGEMENT THROUGH RECOVERY IMPLEMENTATION PROGRAM. (a)iiThe authority, with the assistance of Texas A&M University, shall cooperatively develop a recovery implementation program through a facilitated, consensus-based process that involves input from the United States Fish and Wildlife Service, other appropriate federal agencies, and all interested stakeholders, including those listed under Subsection (e)(1) of this section. The recovery implementation program shall be developed for the species that are:

(1)iilisted as threatened or endangered species under federal law; and

(2)iiassociated with the aquifer.

(b)iiThe authority shall enter into a memorandum of agreement with the United States Fish and Wildlife Service, other appropriate federal agencies, the Texas Commission on Environmental Quality, the Parks and Wildlife Department, the Department of Agriculture, the Texas Water Development Board, and other stakeholders, not later than December 31, 2007, in order to develop a program document that may be in the form of a habitat conservation plan used in issuance of an incidental take permit as outlined in Subsection (d) of this section.

(c)iiThe authority shall enter into an implementing agreement with the United States Fish and Wildlife Service, other appropriate federal agencies, the Texas Commission on Environmental Quality, the Parks and Wildlife Department, the Department of Agriculture, the Texas Water Development Board, and other stakeholders to develop a program document that may be in the form of a habitat conservation plan used in issuance of an incidental take permit as outlined in Subsection (d) of this section not later than December 31, 2009.

(d)iiThe authority, the Texas Commission on Environmental Quality, the Parks and Wildlife Department, the Department of Agriculture, the Texas Water Development Board, and other stakeholders shall jointly prepare a program document that may be in the form of a habitat conservation plan used in issuance of an incidental take permit with the United States secretary of the interior, through the United States Fish and Wildlife Service and other appropriate federal agencies, under Section 4 or

5142 80th Legislature — Regular Session 68th Day


Section 6, Endangered Species Act of 1973 (16 U.S.C. Section 1533 or 1535), as applicable, based on the program developed under Subsection (a) of this section. The program document shall:

(1)iiprovide recommendations for withdrawal adjustments based on a combination of spring discharge rates of the San Marcos and Comal Springs and levels at the J-17 and J-27 wells during critical periods to ensure that federally listed, threatened, and endangered species associated with the Edwards Aquifer will be protected at all times, including throughout a repeat of the drought of record;

(2)iiinclude provisions to pursue cooperative and grant funding to the extent available from all state, federal, and other sources for eligible programs included in the cooperative agreement under Subsection (c) of this section, including funding for a program director; and

(3)iibe approved and executed by the authority, the Texas Commission on Environmental Quality, the Parks and Wildlife Department, the Department of Agriculture, the Texas Water Development Board, and the United States Fish and Wildlife Service not later than September 1, 2012, and the agreement shall take effect December 31, 2012.

(e)iiTexas A&M University shall assist in the creation of a steering committee to oversee and assist in the development of the cooperative agreement under Subsection (c) of this section. The steering committee must be created not later than Septemberi30, 2007. The initial steering committee shall be composed of:

(1)iia representative of each of the following entities, as appointed by the governing body of that entity:

(A)iithe Edwards Aquifer Authority;

(B)iithe Texas Commission on Environmental Quality;

(C)iithe Parks and Wildlife Department;

(D)iithe Department of Agriculture;

(E)iithe Texas Water Development Board;

(F)iithe San Antonio Water System;

(G)iithe Guadalupe-Blanco River Authority;

(H)iithe San Antonio River Authority;

(I)iithe South Central Texas Water Advisory Committee;

(J)iiBexar County;

(K)iiCPS Energy; and

(L)iiBexar Metropolitan Water District or its successor; and

(2)iinine other persons who respectively must be:

(A)iia representative of a holder of an initial regular permit issued to a retail public utility located west of Bexar County, to be appointed by the authority;

(B)iia representative of a holder of an initial regular permit issued by the authority for industrial purposes, to be appointed by the authority;

(C)iia representative of a holder of an industrial surface water right in the Guadalupe River Basin, to be appointed by the Texas Commission on Environmental Quality;

(D)iia representative of a holder of a municipal surface water right in the Guadalupe River Basin, to be appointed by the Texas Commission on Environmental Quality;

Saturday, May 26, 2007 SENATE JOURNAL 5143


(E)iia representative of a retail public utility in whose service area the Comal Springs or San Marcos Springs is located;

(F)iia representative of a holder of an initial regular permit issued by the authority for irrigation, to be appointed by the commissioner of agriculture;

(G)iia representative of an agricultural producer from the Edwards Aquifer region, to be appointed by the commissioner of agriculture;

(H)iia representative of environmental interests from the Texas Living Waters Project, to be appointed by the governing body of that project; and

(I)iia representative of recreational interests in the Guadalupe River Basin, to be appointed by the Parks and Wildlife Commission.

(f)iiThe steering committee shall work with Texas A&M University to:

(1)iiestablish a regular meeting schedule and publish that schedule to encourage public participation; and

(2)iinot later than October 31, 2007, hire a program director to be housed at Texas A&M University.

(g)iiTexas A&M University may accept outside funding to pay the salary and expenses of the program director hired under this section and any expenses associated with the university's participation in the creation of the steering committee or subcommittees established by the steering committee.

(h)iiWhere reasonably practicable or as required by law, any meeting of the steering committee, the Edwards Aquifer area expert science subcommittee, or another subcommittee established by the steering committee must be open to the public.

(i)iiThe steering committee appointed under this section shall appoint an Edwards Aquifer area expert science subcommittee not later than December 31, 2007. The expert science subcommittee must be composed of an odd number of not fewer than seven or more than 15 members who have technical expertise regarding the Edwards Aquifer system, the threatened and endangered species that inhabit that system, springflows, or the development of withdrawal limitations. The Bureau of Economic Geology of The University of Texas at Austin and the River Systems Institute at Texas State University shall assist the expert science subcommittee. Chapter 2110, Government Code, does not apply to the size, composition, or duration of the expert science subcommittee.

(j)iiThe Edwards Aquifer area expert science subcommittee shall, among other things, analyze species requirements in relation to spring discharge rates and aquifer levels as a function of recharge and withdrawal levels. Based on that analysis and the elements required to be considered by the authority under Section 1.14 of this article, the expert science subcommittee shall, through a collaborative process designed to achieve consensus, develop recommendations for withdrawal reduction levels and stages for critical period management including, if appropriate, establishing separate and possibly different withdrawal reduction levels and stages for critical period management for different pools of the aquifer needed to maintain target spring discharge and aquifer levels. The expert science subcommittee shall submit its recommendations to the steering committee and all other stakeholders involved in the recovery implementation program under this section.

5144 80th Legislature — Regular Session 68th Day


(k)iiThe initial recommendations of the Edwards Aquifer area expert science subcommittee must be completed and submitted to the steering committee and other stakeholders not later than December 31, 2008, and should include an evaluation:

(1)iiof the option of designating a separate San Marcos pool, of how such a designation would affect existing pools, and of the need for an additional well to measure the San Marcos pool, if designated;

(2)iiof the necessity to maintain minimum springflows, including a specific review of the necessity to maintain a flow to protect the federally threatened and endangered species; and

(3)iias to whether adjustments in the trigger levels for the San Marcos Springs flow for the San Antonio pool should be made.

(l)iiIn developing its recommendations, the Edwards Aquifer area expert science subcommittee shall:

(1)iiconsider all reasonably available science, including any Edwards Aquifer-specific studies, and base its recommendations solely on the best science available; and

(2)iioperate on a consensus basis to the maximum extent possible.

(m)iiAfter development of the cooperative agreement, the steering committee, with the assistance of the Edwards Aquifer area expert science subcommittee and with input from the other recovery implementation program stakeholders, shall prepare and submit recommendations to the authority. The recommendations must:

(1)iiinclude a review of the critical period management plan, to occur at least once every five years;

(2)iiinclude specific monitoring, studies, and activities that take into account changed conditions and information that more accurately reflects the importance of critical period management; and

(3)iiestablish a schedule for continuing the validation or refinement of the critical period management plan adopted by the authority and the strategies to achieve the program and cooperative agreement described by this section.

(n)iiIn this subsection, "recharge facility" means a dam, reservoir, or other method of recharge project and associated facilities, structures, or works but does not include facilities designed to recirculate water at Comal or San Marcos Springs. The steering committee shall establish a recharge facility feasibility subcommittee to:

(1)iiassess the need for the authority or any other entity to own, finance, design, construct, operate, or maintain recharge facilities;

(2)iiformulate plans to allow the authority or any other entity to own, finance, design, construct, operate, or maintain recharge facilities;

(3)iimake recommendations to the steering committee as to how to calculate the amount of additional water that is made available for use from a recharge project including during times of critical period reductions;

(4)iimaximize available federal funding for the authority or any other entity to own, finance, design, construct, operate, or maintain recharge facilities; and

(5)iievaluate the financing of recharge facilities, including the use of management fees or special fees to be used for purchasing or operating the facilities.

Saturday, May 26, 2007 SENATE JOURNAL 5145


(o)iiThe steering committee may establish other subcommittees as necessary, including a hydrology subcommittee, a community outreach and education subcommittee, and a water supply subcommittee.

(p)iiOn execution of the memorandum of agreement described by Subsection (b) of this section, the steering committee described by Subsection (e) of this section may, by majority vote of its members, vote to add members to the steering committee, change the makeup of the committee, or dissolve the committee. If the steering committee is dissolved, the program director hired under Subsection (f) of this section shall assume the duties of the steering committee.

(q)iiThe authority shall provide an annual report to the governor, lieutenant governor, and speaker of the house of representatives not later than January 1 of each year that details:

(1)iithe status of the recovery implementation program development process;

(2)iithe likelihood of completion of the recovery implementation program and the cooperative agreement described by Subsection (c) of this section;

(3)iithe extent to which the recommendations of the Edwards Aquifer area expert science subcommittee are being considered and implemented by the authority;

(4)iiany other actions that need to be taken in response to each recommendation;

(5)iireasons explaining why any recommendation received has not been implemented; and

(6)iiany other issues the authority considers of value for the efficient and effective completion of the program and the cooperative agreement under this section.

SECTIONi12.07.iiSubsections (b), (h), and (i), Section 1.29, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, are amended to read as follows:

(b)iiThe authority shall assess equitable aquifer management fees based on aquifer use under the water management plan to finance its administrative expenses and programs authorized under this article. Each water district governed by Chapter 36 [52], Water Code, that is within the authority's boundaries may contract with the authority to pay expenses of the authority through taxes in lieu of user fees to be paid by water users in the district. The contract must provide that the district will pay an amount equal to the amount that the water users in the district would have paid through user fees. The authority may not collect a total amount of fees and taxes that is more than is reasonably necessary for the administration of the authority.

(h)iiFees assessed by the authority may not be used to fund the cost of reducing withdrawals or retiring permits or of judgments or claims related to withdrawals or permit retirements [Special fees collected under Subsection (c) or (d) of this section may not be used to finance a surface water supply reservoir project].

(i)iiThe authority and other stakeholders, including state agencies, listed under Section 1.26A of this article shall provide money as necessary[, but not to exceed five percent of the money collected under Subsection (d) of this section,] to finance the activities of the steering committee and any subcommittees appointed by the steering committee and the program director of the recovery implementation program under Section 1.26A of this article. The authority shall provide, as necessary, up to $75,000

5146 80th Legislature — Regular Session 68th Day


annually, adjusted for changes in the consumer price index, to finance the South Central Texas Water Advisory Committee's administrative expenses and programs authorized under this article.

SECTIONi12.08.iiSubsection (a), Section 1.45, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, is amended to read as follows:

(a)iiThe authority may own, finance, design, construct, [build or] operate, and maintain recharge dams and associated facilities, structures, or works in the contributing or recharge area of the aquifer if the recharge is made to increase the yield of the aquifer, [and] the recharge project does not impair senior water rights or vested riparian rights, and the recharge project is not designed to recirculate water at Comal or San Marcos Springs.

SECTIONi12.09.iiSubsections (b) and (d), Section 1.14, Section 1.21, and Subsections (a), (c), and (d), Section 1.29, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, are repealed.

SECTIONi12.10.ii(a)iiBefore January 1, 2012, a suit may not be instituted in a state court contesting:

(1)iithe validity or implementation of this article; or

(2)iithe groundwater withdrawal amounts recognized in Section 1.14, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, as amended by this Act.i

(b)iiIf applicable, a party that files a suit in any court shall be automatically removed from the steering committee established under Section 1.26A, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, as added by this Act.

(c)iiA suit against the Edwards Aquifer Authority may not be instituted or maintained by a person who owns, holds, or uses a surface water right and claims injury or potential injury to that right for any reason, including any actions taken by the Edwards Aquifer Authority to implement or enforce Article 1, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, as amended. This section does not apply to suits brought pursuant to Section 1.45, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993.

SECTIONi12.11.iiThe change in law made by this article applies only to a cause of action filed on or after the effective date of this article. A cause of action that is filed before the effective date of this article is governed by the law in effect immediately before the effective date of this article, and that law is continued in effect for that purpose.

SECTIONi12.12.iiThis article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect September 1, 2007.

ARTICLE 13. TERRITORY OF CULBERSON COUNTY GROUNDWATER CONSERVATION DISTRICT

SECTIONi13.01.iiChapter 1075, Acts of the 75th Legislature, Regular Session, 1997, is amended by adding Section 3A to read as follows:

Sec.i3A.iiIn addition to the portions of Culberson County included in the boundaries of the district on August 31, 2007, the boundaries of the district include all of the remaining territory in Culberson County.

Saturday, May 26, 2007 SENATE JOURNAL 5147


SECTIONi13.02.ii(a)iiThe annexation under Section 3A, Chapter 1075, Acts of the 75th Legislature, Regular Session, 1997, as added by this article, of the additional territory in Culberson County that was not included in the boundaries of the Culberson County Groundwater Conservation District on August 31, 2007, is subject to ratification at an election held under Section 36.328, Water Code, and this section in which only the voters residing in the territory to be annexed are eligible to vote.

(b)iiThe board of directors of the Culberson County Groundwater Conservation District shall hold the ratification election on the first uniform election date that occurs after the effective date of this article that allows for compliance with the time requirements of the Election Code.

(c)iiIf a majority of the voters voting at the ratification election vote in favor of the annexation, the Culberson County Groundwater Conservation District boundaries include all of Culberson County.

(d)iiIf a majority of the voters voting at the ratification election do not vote in favor of the annexation, the Culberson County Groundwater Conservation District boundaries are unchanged and this article expires.

ARTICLE 14. EFFECTIVE DATE

SECTIONi14.01.iiExcept as otherwise provided by this Act, this Act takes effect September 1, 2007.

The Conference Committee Report on SBi3 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

SENATE BILL 11

Senator Carona submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on SBi11 have had the same under consideration, and beg to report it back with the recommendation that it do pass in the form and text hereto attached.

CARONA CORTE
BRIMER ESCOBAR
HINOJOSA ISETT
On the part of the Senate On the part of the House

A BILL TO BE ENTITLED
AN ACT

relating to homeland security and protection of the public, including protections against human trafficking; providing penalties.

5148 80th Legislature — Regular Session 68th Day


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. CERTAIN DISASTER RESPONSE PROCEDURES FOR POLITICAL SUBDIVISIONS

SECTIONi1.01.iiSection 418.004, Government Code, is amended by adding Subdivisions (10) through (14) to read as follows:

(10)ii"Local government entity" means a county, incorporated city, independent school district, emergency services district, other special district, joint board, or other entity defined as a political subdivision under the laws of this state that maintains the capability to provide mutual aid.

(11)ii"Mutual aid" means a homeland security activity, as defined by Section 421.001, performed under the system or a written mutual aid agreement.

(12)ii"Requesting local government entity" means a local government entity requesting mutual aid assistance under the system.

(13)ii"Responding local government entity" means a local government entity providing mutual aid assistance in response to a request under the system.

(14)ii"System" means the Texas Statewide Mutual Aid System.

SECTIONi1.02.iiSubchapter E, Chapter 418, Government Code, is amended by adding Section 418.1015 to read as follows:

Sec.i418.1015.iiEMERGENCY MANAGEMENT DIRECTORS. (a)iiThe presiding officer of the governing body of an incorporated city or a county or the chief administrative officer of a joint board is designated as the emergency management director for the officer's political subdivision.

(b)iiAn emergency management director serves as the governor's designated agent in the administration and supervision of duties under this chapter. An emergency management director may exercise the powers granted to the governor under this chapter on an appropriate local scale.

(c)iiAn emergency management director may designate a person to serve as emergency management coordinator. The emergency management coordinator shall serve as an assistant to the emergency management director for emergency management purposes.

SECTIONi1.03.iiSubsection (c), Section 418.107, Government Code, is amended to read as follows:

(c)iiA local government entity [political subdivision or regional planning commission] may render mutual aid to other local government entities [political subdivisions or regional planning commissions] under mutual aid agreements or the system.

SECTIONi1.04.iiThe heading to Section 418.109, Government Code, is amended to read as follows:

Sec.i418.109.iiAUTHORITY TO RENDER MUTUAL AID ASSISTANCE.

SECTIONi1.05.iiSubsection (d), Section 418.109, Government Code, is amended to read as follows:

(d)iiA local government entity or [municipality, county, emergency services district, fire protection agency, regional planning commission,] organized volunteer group[, or other emergency services entity] may provide mutual aid assistance on request from another local government entity or [municipality, county, emergency services district, fire protection agency, regional planning commission,] organized

Saturday, May 26, 2007 SENATE JOURNAL 5149


volunteer group[, or other emergency services entity]. The chief or highest ranking officer of the entity from which assistance is requested, with the approval and consent of the presiding officer of the governing body of that entity, may provide that assistance while acting in accordance with the policies, ordinances, and procedures established by the governing body of that entity [and consistent with any mutual aid plans developed by the emergency management council].

SECTIONi1.06.iiSection 418.110, Government Code, is amended to read as follows:

Sec.i418.110.iiSTATEWIDE MUTUAL AID PROGRAM FOR FIRE EMERGENCIES. (a)iiThe division, in consultation with state fire protection agencies and the Texas Commission on Fire Protection, may [shall] develop a statewide mutual aid program for fire emergencies.

(b)iiA program developed under this section:

(1)iidoes not alter the legal obligations of a political subdivision participating in the system; and

(2)iimust be consistent with the state emergency management plan.

SECTIONi1.07.iiChapter 418, Government Code, is amended by adding Subchapter E-1 to read as follows:

SUBCHAPTER E-1. TEXAS STATEWIDE MUTUAL AID SYSTEM

Sec.i418.111.iiCREATION OF THE TEXAS STATEWIDE MUTUAL AID SYSTEM. (a)iiThe Texas Statewide Mutual Aid System is established to provide integrated statewide mutual aid response capability between local government entities without a written mutual aid agreement.

(b)iiA request for mutual aid assistance between local government entities is considered to be made under the system, unless the requesting and responding entities are parties to a written mutual aid agreement in effect when the request is made.

(c)iiThis subchapter does not affect a written mutual aid agreement between local government entities in effect on or before the effective date of this subchapter or restrict the ability of local government entities to enter into a written mutual aid agreement as otherwise authorized by statute after the effective date of this subchapter. If a request is made between local government entities that are parties to a written mutual aid agreement, the terms of that agreement control the rights and obligations of the parties.

Sec.i418.112.iiADMINISTRATION BY DIVISION. The division shall administer the system. In administering the system, the division shall encourage and assist political subdivisions in planning and implementing comprehensive all-hazards emergency management programs, including assisting political subdivisions to ensure that the local emergency management plan of each subdivision adequately provides for the rendering and receipt of mutual aid.

Sec.i418.113.iiDISASTER DISTRICTS. (a)iiThis state is divided into disaster districts to engage in homeland security preparedness and response activities. The boundaries of the disaster districts coincide with the geographic boundaries of the state planning regions established by the governor under Chapter 391, Local Government Code.

5150 80th Legislature — Regular Session 68th Day


(b)iiA disaster district committee is established for each disaster district. Each committee is composed of local representatives of the state agencies, boards, and commissions and organized volunteer groups with representation on the emergency management council.

(c)iiEach disaster district committee shall coordinate with political subdivisions located in the disaster district to ensure that state and federal emergency assets are made available as needed to provide the most efficient and effective response possible.

(d)iiThe public safety director of the Department of Public Safety of the State of Texas shall appoint a commanding officer from the Texas Highway Patrol to serve as chair of each disaster district committee. The chair shall:

(1)iiinform the state Director of Homeland Security on all matters relating to disasters and emergencies as requested by the state Director of Homeland Security; and

(2)iiinform the public safety director of the Department of Public Safety of the State of Texas on all matters as requested by the public safety director.

(e)iiRepresentatives of the emergency management council assigned to each district shall assist the chair of their disaster district committee and provide guidance, counsel, and administrative support as required.

Sec.i418.114.iiPROCEDURES FOR MUTUAL AID. (a)iiThe political subdivisions in each state planning region established by the governor under Chapter 391, Local Government Code, shall agree on procedures that specify the manner in which mutual aid will be provided in response to a request from:

(1)iia political subdivision in the region;

(2)iia political subdivision in another region; or

(3)iithis state.

(b)iiA copy of the procedures must be provided to the division and the disaster district committee chair.

Sec.i418.115.iiREQUESTING AND PROVIDING MUTUAL AID ASSISTANCE. (a)iiA request for mutual aid assistance may be submitted verbally or in writing. If a request is submitted verbally, it must be confirmed in writing not later than the 30th day after the date the request was made.

(b)iiIf a request for mutual aid assistance is made to a department or agency of a political subdivision, the chief or highest ranking officer of the department or agency, with the approval and consent of the presiding officer of the governing body of the political subdivision or that officer's designee, may provide the requested assistance in accordance with the policies, ordinances, and procedures established by the governing body of the political subdivision.

Sec.i418.1151.iiASSESSMENT OF ABILITY TO RENDER ASSISTANCE. (a)iiWhen contacted with a request for mutual aid assistance, a local government entity shall assess local resources to determine availability of personnel, equipment, and other assistance to respond to the request.

Saturday, May 26, 2007 SENATE JOURNAL 5151


(b)iiA responding local government entity may provide assistance to the extent personnel, equipment, and resources are determined to be available. A local government entity is not required to provide mutual aid assistance unless the entity determines that the entity has sufficient resources to provide assistance, based on current or anticipated events in its jurisdiction.

Sec.i418.1152.iiSUPERVISION AND CONTROL. When providing mutual aid assistance under the system:

(1)iithe response effort must be organized and function in accordance with the National Incident Management System guidelines;

(2)iithe personnel, equipment, and resources of a responding local government entity being used in the response effort are under the operational control of the requesting local government entity unless otherwise agreed;

(3)iidirect supervision and control of personnel, equipment, and resources and personnel accountability remain the responsibility of the designated supervisory personnel of the responding local government entity;

(4)iiunless otherwise agreed in advance, an emergency medical service organization providing assistance under the system shall use the medical protocols authorized by the organization's medical director;

(5)iithe designated supervisory personnel of the responding local government entity shall:

(A)iimaintain daily personnel time records, material records, and a log of equipment hours;

(B)iibe responsible for the operation and maintenance of the equipment and other resources furnished by the responding local government entity; and

(C)iireport work progress to the requesting local government entity; and

(6)iithe responding local government entity's personnel and other resources are subject to recall at any time, subject to reasonable notice to the requesting local government entity.

Sec.i418.1153.iiDURATION OF AID. The provision of mutual aid assistance under the system may continue until:

(1)iithe services of the responding local government entity are no longer required; or

(2)iithe responding local government entity determines that further assistance should not be provided.

Sec.i418.116.iiRIGHTS AND PRIVILEGES. (a)iiA person assigned, designated, or ordered to perform duties by the governing body of the local government entity employing the person in response to a request under the system is entitled to receive the same wages, salary, pension, and other compensation and benefits, including injury or death benefits, disability payments, and workers' compensation benefits, for the performance of the duties under the system as though the services were rendered for the entity employing the person.

(b)iiThe local government entity employing the person is responsible for the payment of wages, salary, pension, and other compensation and benefits associated with the performance of duties under the system.

5152 80th Legislature — Regular Session 68th Day


Sec.i418.117.iiLICENSE PORTABILITY. If the assistance of a person who holds a license, certificate, permit, or other document evidencing qualification in a professional, mechanical, or other skill is requested by a local government entity under the system, the person is considered licensed, certified, permitted, or otherwise documented in the political subdivision in which the service is provided as long as the service is required, subject to any limitations imposed by the chief executive officer or the governing body of the requesting local government entity.

Sec.i418.118.iiREIMBURSEMENT OF COSTS: STATE REQUEST OR FEDERAL DISASTER DECLARATION. (a)iiThe division shall administer all requests for reimbursement for costs associated with providing mutual aid assistance in response to a request made by the division for an incident resulting in the issuance of a disaster declaration by the president of the United States. A request for reimbursement made to the division must be made in accordance with procedures developed by the division.

(b)iiThe division may directly request the provision of mutual aid assistance from any local government entity participating in the system. If the division requests the provision of assistance and the local government entity responds, the state shall reimburse the actual costs of providing assistance, including costs for personnel, operation and maintenance of equipment, damaged equipment, food, lodging, and transportation, incurred by the responding local government entity. The state shall pay reimbursements from available state money. If funds are made available from the disaster contingency fund, the division shall make reimbursement from the disaster contingency fund for eligible expenses to the extent that available state money is inadequate.

(c)iiIf federal money is available to pay costs associated with the provision of mutual aid assistance in response to a request made by the division, the division shall make the claim for the eligible costs of the responding local government entity on the division's grant application and shall disburse the federal share of the money to the responding local government entity, with sufficient state funds to cover the actual costs incurred by the responding local government entity in providing the assistance.

Sec.i418.1181.iiREIMBURSEMENT OF COSTS: REQUEST BY LOCAL GOVERNMENT ENTITY. (a)iiIf a local government entity requests mutual aid assistance from another local government entity under the system, the requesting local government entity shall reimburse the actual costs of providing mutual aid assistance to the responding local government entity, including costs for personnel, operation and maintenance of equipment, damaged equipment, food, lodging, and transportation, incurred by the responding local government entity in response to a request for reimbursement. Local government entities with a mutual aid agreement when the request for mutual aid assistance is made are subject to the agreement's terms of reimbursement, as provided by Section 418.111.

(b)iiThe requesting local government entity shall pay the reimbursement from available funds. If federal money is available to pay costs associated with the provision of mutual aid assistance, the requesting local government entity shall make the claim for the eligible costs of the responding local government entity on the

Saturday, May 26, 2007 SENATE JOURNAL 5153


requesting entity's subgrant application and shall disburse the federal share of the money to the responding local government entity, with sufficient local funds to cover the actual costs of the responding local government entity in providing assistance.

SECTIONi1.08.iiSubdivision (9), Section 418.004, and Subsections (a), (b), and (c), Section 418.109, Government Code, are repealed.

SECTIONi1.09.iiThis article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect September 1, 2007.

ARTICLE 2. AMATEUR RADIO OPERATORS

SECTIONi2.01.iiSubchapter Z, Chapter 661, Government Code, is amended by adding Section 661.919 to read as follows:

Sec.i661.919.iiAMATEUR RADIO OPERATORS. (a)iiA state employee who holds an amateur radio station license issued by the Federal Communications Commission may be granted leave not to exceed 10 days each fiscal year to participate in specialized disaster relief services without a deduction in salary or loss of vacation time, sick leave, earned overtime credit, or state compensatory time if the leave is taken:

(1)iiwith the authorization of the employee's supervisor; and

(2)iiwith the approval of the governor.

(b)iiThe number of amateur radio operators who are eligible for leave under this section may not exceed 350 state employees at any one time during a state fiscal year. The division of emergency management in the governor's office shall coordinate the establishment and maintenance of the list of eligible employees.

SECTIONi2.02.iiSubsection (c), Section 37.082, Education Code, is amended to read as follows:

(c)iiIn this section, "paging device" means a telecommunications device that emits an audible signal, vibrates, displays a message, or otherwise summons or delivers a communication to the possessor. The term does not include an amateur radio under the control of an operator who holds an amateur radio station license issued by the Federal Communications Commission.

ARTICLE 3. CERTAIN OPEN MEETINGS PROVISIONS RELATED TO SCHOOLS AND GOVERNMENTAL BODIES; TEXAS SCHOOL SAFETY CENTER

SECTIONi3.01.iiSubsection (b), Section 12.1051, Education Code, is amended to read as follows:

(b)iiWith respect to the operation of an open-enrollment charter school, any requirement in Chapter 551 or 552, Government Code, or another law that concerns open meetings or the availability of information, that applies to a school district, the board of trustees of a school district, or public school students applies to an open-enrollment charter school, the governing body of a charter holder, the governing body of an open-enrollment charter school, or students attending an open-enrollment charter school.

SECTIONi3.02.iiSubsection (c), Section 37.108, Education Code, is amended to read as follows:

5154 80th Legislature — Regular Session 68th Day


(c)iiA school district shall report the results of the security audit conducted under Subsection (b) to the district's board of trustees and, in the manner required by the Texas School Safety Center, to the Texas School Safety Center.

SECTIONi3.03.iiSubsection (a), Section 37.203, Education Code, is amended to read as follows:

(a)iiThe center is advised by a board of directors composed of:

(1)iithe attorney general, or the attorney general's designee;

(2)iithe commissioner, or the commissioner's designee;

(3)iithe executive director of the Texas Juvenile Probation Commission, or the executive director's designee;

(4)iithe executive director of the Texas Youth Commission, or the executive director's designee;

(5)iithe commissioner of the [Texas] Department of State [Mental] Health Services [and Mental Retardation], or the commissioner's designee; [and]

(6)iithe commissioner of higher education, or the commissioner's designee; and

(7)iithe following members appointed by the governor with the advice and consent of the senate:

(A)iia juvenile court judge;

(B)iia member of a school district's board of trustees;

(C)iian administrator of a public primary school;

(D)iian administrator of a public secondary school;

(E)iia member of the state parent-teacher association;

(F)iia teacher from a public primary or secondary school;

(G)iia public school superintendent who is a member of the Texas Association of School Administrators;

(H)iia school district police officer or a peace officer whose primary duty consists of working in a public school; and

(I)iitwo members of the public.

SECTIONi3.04.iiSection 37.207, Education Code, is amended to read as follows:

Sec.i37.207.iiMODEL SAFETY AND SECURITY AUDIT PROCEDURE. (a)iiThe center shall develop a model safety and security audit procedure for use by school districts that includes:

(1)iiproviding each district with guidelines and a training video showing proper audit procedures;

(2)iireviewing each district audit, providing the results of the review to the district, and making recommendations for improvements based on the audit; and

(3)iiincorporating the findings of district audits in a statewide report on school safety made available by the center to the public.

(b)iiEach school district shall report the results of its audits to the center in the manner required by the center.

SECTIONi3.05.iiSubchapter G, Chapter 37, Education Code, is amended by adding Section 37.213 to read as follows:

Sec.i37.213.iiINSTITUTIONS OF HIGHER EDUCATION. (a)iiIn this section, "institution of higher education" has the meaning assigned by Section 61.003.

Saturday, May 26, 2007 SENATE JOURNAL 5155


(b)iiAn institution of higher education may use any appropriate model plan developed by the center under Section 37.205(4).

(c)iiThe center may provide an institution of higher education with on-site technical assistance and safety training.

(d)iiThe center may charge a fee to an institution of higher education for assistance and training provided under Subsection (c).

SECTIONi3.06.iiSection 551.045, Government Code, is amended by adding Subsection (e) to read as follows:

(e)iiFor purposes of Subsection (b)(2), the sudden relocation of a large number of residents from the area of a declared disaster to a governmental body's jurisdiction is considered a reasonably unforeseeable situation for a reasonable period immediately following the relocation. Notice of an emergency meeting or supplemental notice of an emergency item added to the agenda of a meeting to address a situation described by this subsection must be given to members of the news media as provided by Section 551.047 not later than one hour before the meeting.

SECTIONi3.07.iiSection 551.076, Government Code, is amended to read as follows:

Sec.i551.076.iiDELIBERATION REGARDING SECURITY DEVICES OR SECURITY AUDITS; CLOSED MEETING. This chapter does not require a governmental body to conduct an open meeting to deliberate:

(1)iithe deployment, or specific occasions for implementation, of security personnel or devices; or

(2)iia security audit.

ARTICLE 4. PROVISIONS RELATED TO TOLL ROADS

SECTIONi4.01.iiSubsection (a), Section 228.054, Transportation Code, is amended to read as follows:

(a)iiExcept as provided by Subsection (e), the operator of a vehicle, other than an authorized emergency vehicle, as defined by Section 541.201, that is driven or towed through a toll collection facility shall pay the proper toll. The exemption from payment of a toll for an authorized emergency vehicle applies regardless of whether the vehicle is:

(1)iiresponding to an emergency;

(2)iidisplaying a flashing light; or

(3)iimarked as an emergency vehicle.

SECTIONi4.02.iiSection 284.070, Transportation Code, is amended by adding Subsection (e) to read as follows:

(e)iiAn authorized emergency vehicle, as defined by Section 541.201, is exempt from payment of a toll imposed under this chapter regardless of whether the vehicle is:

(1)iiresponding to an emergency;

(2)iidisplaying a flashing light; or

(3)iimarked as an emergency vehicle.

SECTIONi4.03.iiSubsection (a), Section 366.178, Transportation Code, is amended to read as follows:

5156 80th Legislature — Regular Session 68th Day


(a)iiA motor vehicle other than an authorized emergency vehicle, as defined by Section 541.201, [a police or emergency vehicle] that passes through a toll collection facility, whether driven or towed, shall pay the proper toll. The exemption from payment of a toll for an authorized emergency vehicle applies regardless of whether the vehicle is:

(1)iiresponding to an emergency;

(2)iidisplaying a flashing light; or

(3)iimarked as a police or emergency vehicle.

SECTIONi4.04.iiSubsection (a), Section 370.177, Transportation Code, is amended to read as follows:

(a)iiExcept as provided by Subsection (a-1), the operator of a vehicle, other than an authorized emergency vehicle as defined by Section 541.201, that is driven or towed through a toll collection facility of a turnpike project shall pay the proper toll. The operator of a vehicle who drives or tows a vehicle through a toll collection facility and does not pay the proper toll commits an offense. An offense under this subsection is a misdemeanor punishable by a fine not to exceed $250. The exemption from payment of a toll for an authorized emergency vehicle applies regardless of whether the vehicle is:

(1)iiresponding to an emergency;

(2)iidisplaying a flashing light; or

(3)iimarked as an emergency vehicle.

SECTIONi4.05.iiSubtitle G, Title 6, Transportation Code, is amended by adding Chapter 371 to read as follows:

CHAPTER 371. PROVISIONS APPLICABLE TO MORE THAN ONE TYPE OF TOLL PROJECT

Sec.i371.001.iiVEHICLES USED BY NONPROFIT DISASTER RELIEF ORGANIZATIONS. (a)iiIn this section:

(1)ii"Toll project" means a toll project described by Section 201.001(b), regardless of whether the toll project is:

(A)iia part of the state highway system; or

(B)iisubject to the jurisdiction of the department.

(2)ii"Toll project entity" means an entity authorized by law to acquire, design, construct, finance, operate, and maintain a toll project, including:

(A)iithe department under Chapter 227 or 228;

(B)iia regional tollway authority under Chapter 366;

(C)iia regional mobility authority under Chapter 370; or

(D)iia county under Chapter 284.

(b)iiA toll project entity may not require a vehicle registered under Section 502.203 to pay a toll for the use of a toll project.

SECTIONi4.06.iiSection 541.201, Transportation Code, is amended by adding Subdivision (13-a) to read as follows:

(13-a)ii"Police vehicle" means a vehicle of a governmental entity primarily used by a peace officer, as defined by Article 2.12, Code of Criminal Procedure, for law enforcement purposes.

SECTIONi4.07.iiSubsection (d), Section 228.058, Transportation Code, is repealed.

Saturday, May 26, 2007 SENATE JOURNAL 5157


ARTICLE 5. OPERATION OF DESIGNATED EMERGENCY VEHICLES

SECTIONi5.01.iiSection 418.013, Government Code, is amended by adding Subsection (c) to read as follows:

(c)iiThe emergency management council shall make recommendations to the Department of Public Safety as to which private emergency organizations, such as the American National Red Cross, the Salvation Army, Radio Amateur Civil Emergency Service, and other similar organizations with the capability to supplement the state's resources in disaster situations, should be authorized to operate certain vehicles as designated emergency vehicles in the case of a disaster.

SECTIONi5.02.iiSubchapter A, Chapter 546, Transportation Code, is amended by adding Section 546.006 to read as follows:

Sec.i546.006.iiDESIGNATED EMERGENCY VEHICLE DURING DECLARED DISASTERS. (a)iiFrom recommendations made under Section 418.013(c), Government Code, the department shall designate which vehicles may be operated by which designated organizations as emergency vehicles during declared disasters.

(b)iiA vehicle designated under Subsection (a) may be operated by a designated organization as if the vehicle were an authorized emergency vehicle under this subtitle if:

(1)iithe governor declares a state of disaster under Section 418.014, Government Code;

(2)iithe department requests assistance from the designated organization; and

(3)iithe vehicle is operated by the designated organization or a member of the designated organization in response to the state of disaster.

(c)iiThe department shall adopt rules as necessary to implement this section.

ARTICLE 6. INTERCEPTION OF WIRE, ORAL, OR ELECTRONIC COMMUNICATIONS

SECTIONi6.01.iiSection 4, Article 18.20, Code of Criminal Procedure, is amended to read as follows:

Sec.i4.iiOFFENSES FOR WHICH INTERCEPTIONS MAY BE AUTHORIZED. A judge of competent jurisdiction may issue an order authorizing interception of wire, oral, or electronic communications only if the prosecutor applying for the order shows probable cause to believe that the interception will provide evidence of the commission of:

(1)iia felony under Section 19.02, 19.03, or 43.26, Penal Code;

(2)iia felony under:

(A)iiChapter 481, Health and Safety Code, other than felony possession of marihuana;

(B)iiSection 485.033, Health and Safety Code; or

(C)iiChapter 483, Health and Safety Code; [or]

(3)iian offense under Section 20.03 or 20.04, Penal Code;

(4)iian offense under Chapter 20A, Penal Code;

(5)iian offense under Chapter 34, Penal Code, if the criminal activity giving rise to the proceeds involves the commission of an offense under Title 5, Penal Code, or an offense under federal law or the laws of another state containing elements that are substantially similar to the elements of an offense under Title 5; or

5158 80th Legislature — Regular Session 68th Day


(6)iian attempt, conspiracy, or solicitation to commit an offense listed in this section.

ARTICLE 7. EMERGENCY ALERT SYSTEM

SECTIONi7.01.iiSubsection (a), Section 418.042, Government Code, is amended to read as follows:

(a)iiThe division shall prepare and keep current a comprehensive state emergency management plan. The plan may include:

(1)iiprovisions for prevention and minimization of injury and damage caused by disaster;

(2)iiprovisions for prompt and effective response to disaster;

(3)iiprovisions for emergency relief;

(4)iiprovisions for energy emergencies;

(5)iiidentification of areas particularly vulnerable to disasters;

(6)iirecommendations for zoning, building restrictions, and other land-use controls, safety measures for securing mobile homes or other nonpermanent or semipermanent structures, and other preventive and preparedness measures designed to eliminate or reduce disasters or their impact;

(7)iiprovisions for assistance to local officials in designing local emergency management plans;

(8)iiauthorization and procedures for the erection or other construction of temporary works designed to protect against or mitigate danger, damage, or loss from flood, fire, or other disaster;

(9)iipreparation and distribution to the appropriate state and local officials of state catalogs of federal, state, and private assistance programs;

(10)iiorganization of manpower and channels of assistance;

(11)iicoordination of federal, state, and local emergency management activities;

(12)iicoordination of the state emergency management plan with the emergency management plans of the federal government;

(13)iicoordination of federal and state energy emergency plans; [and]

(14)iiprovisions for education and training of local officials on activation of the Emergency Alert System established under 47 C.F.R. Part 11; and

(15)iiother necessary matters relating to disasters.

ARTICLE 8. TEMPORARY CARDBOARD TAGS ON VEHICLES

SECTIONi8.01.iiSection 503.005, Transportation Code, is amended by adding Subsections (c) and (d) to read as follows:

(c)iiA dealer who submits information to the database under Section 503.0631 satisfies the requirement for the dealer to notify the department of the sale or transfer of a motor vehicle, trailer, or semitrailer under this section.

(d)iiThe notice required under this section is in addition to the application for vehicle registration and certificate of title a dealer is required to submit under Section 501.0234.

SECTIONi8.02.iiSubsection (d), Section 503.062, Transportation Code, is amended to read as follows:

(d)iiThe department may not issue a dealer temporary cardboard tag or contract for the issuance of a dealer temporary cardboard tag but shall prescribe:

Saturday, May 26, 2007 SENATE JOURNAL 5159


(1)iithe specifications, form, and color of a dealer temporary cardboard tag; [and]

(2)iiprocedures for a dealer to generate a vehicle-specific number using the database developed under Section 503.0626 and assign it to each tag;

(3)iiprocedures to clearly display the vehicle-specific number on the tag; and

(4)iithe period for which a tag may be used for or by a charitable organization.

SECTIONi8.03.iiSubsection (e), Section 503.0625, Transportation Code, is amended to read as follows:

(e)iiThe department may not issue a converter temporary cardboard tag or contract for the issuance of a converter temporary cardboard tag but shall prescribe:

(1)iithe specifications, form, and color of a converter temporary cardboard tag;

(2)iiprocedures for a converter to generate a vehicle-specific number using the database developed under Section 503.0626 and assign it to each tag; and

(3)iiprocedures to clearly display the vehicle-specific number on the tag.

SECTIONi8.04.iiSubchapter C, Chapter 503, Transportation Code, is amended by adding Section 503.0626 to read as follows:

Sec.i503.0626.iiDEALER'S AND CONVERTER'S TEMPORARY TAG DATABASE. (a)iiThe department shall develop and maintain a secure, real-time database of information on vehicles to which dealers and converters have affixed temporary cardboard tags. The database shall be managed by the vehicle titles and registration division of the department.

(b)iiThe database must allow law enforcement agencies to use the vehicle-specific number assigned to and displayed on the tag as required by Section 503.062(d) or Section 503.0625(e) to obtain information about the dealer or converter that owns the vehicle.

(c)iiBefore a dealer's or converter's temporary cardboard tag may be displayed on a vehicle, the dealer or converter must enter into the database through the Internet information on the vehicle and information about the dealer or converter as prescribed by the department. The department may not deny access to the database to any dealer who holds a general distinguishing number issued under this chapter or who is licensed under Chapter 2301, Occupations Code, or to any converter licensed under Chapter 2301, Occupations Code.

(d)iiThe department shall adopt rules and prescribe procedures as necessary to implement this section.

SECTIONi8.05.iiSection 503.063, Transportation Code, is amended by amending Subsections (a), (e), and (f) and adding Subsections (g) and (h) to read as follows:

(a)iiExcept as provided by this section, a dealer shall [may] issue to a person who buys a [an unregistered] vehicle one temporary cardboard buyer's tag for the vehicle.

(e)iiThe department may not issue a buyer's tag or contract for the issuance of a buyer's tag but shall prescribe:

(1)iithe specifications, color, and form of a buyer's tag; and

(2)iiprocedures for a dealer to:

5160 80th Legislature — Regular Session 68th Day


(A)iigenerate a vehicle-specific number using the database developed under Section 503.0631 and assign it to each tag;

(B)iigenerate a vehicle-specific number using the database developed under Section 503.0631 for future use for when a dealer is unable to access the Internet at the time of sale; and

(C)iiclearly display the vehicle-specific number on the tag.

(f)iiThe department shall ensure that a dealer may generate in advance a sufficient amount of vehicle-specific numbers under Subsection (e)(2)(B) in order to continue selling vehicles for a period of up to one week in which a dealer is unable to access the Internet due to an emergency. The department shall establish an expedited procedure to allow affected dealers to apply for additional vehicle-specific numbers so they may remain in business during an emergency.

(g)iiUsing the same vehicle-specific number generated under Subsection (e)(2)(A), a [A] dealer may issue an additional temporary cardboard buyer's tag to a person after the expiration of 20 working [21] days after the issue of a temporary cardboard buyer's tag, and the person may operate the vehicle for which the tag was issued on the additional temporary cardboard buyer's tag if the dealer has been unable to obtain on behalf of the vehicle's owner the necessary documents to obtain permanent metal license plates because the documents are in the possession of a lienholder who has not complied with the terms of Section 501.115(a) [of this code]. An additional tag issued under the terms of this subsection is valid for a maximum of 20 working [21] days after the date of issue.

(h)iiFor each buyer's temporary cardboard tag other than an additional temporary cardboard buyer's tag under Subsection (g), a dealer shall charge the buyer a registration fee of not more than $5 as prescribed by the department to be sent to the comptroller for deposit to the credit of the state highway fund.

SECTIONi8.06.iiSubchapter C, Chapter 503, Transportation Code, is amended by adding Sections 503.0631 and 503.0632 to read as follows:

Sec.i503.0631.iiBUYER'S TEMPORARY TAG DATABASE. (a)iiThe department shall develop and maintain a secure, real-time database of information on persons to whom temporary buyer's tags are issued that may be used by a law enforcement agency in the same manner that the agency uses vehicle registration information. The database shall be managed by the vehicle titles and registration division of the department.

(b)iiThe database must allow law enforcement agencies to use a vehicle-specific number assigned to and displayed on the tag as required by Section 503.063(e)(2) to obtain information about the person to whom the tag was issued.

(c)iiExcept as provided by Subsection (d), before a buyer's temporary cardboard tag may be displayed on a vehicle, a dealer must enter into the database through the Internet information about the buyer of the vehicle for which the tag was issued as prescribed by the department and generate a vehicle-specific number for the tag as required by Section 503.063(e). The department may not deny access to the database to any dealer who holds a general distinguishing number issued under this chapter or who is licensed under Chapter 2301, Occupations Code.

Saturday, May 26, 2007 SENATE JOURNAL 5161


(d)iiA dealer shall obtain 24-hour Internet access at its place of business, but if the dealer is unable to access the Internet at the time of the sale of a vehicle, the dealer shall complete and sign a form, as prescribed by the department, that states the dealer has Internet access, but was unable to access the Internet at the time of sale. The buyer shall keep the original copy of the form in the vehicle until the vehicle is registered to the buyer. Not later than the next business day after the time of sale, the dealer shall submit the information required under Subsection (c).

(e)iiThe department shall adopt rules and prescribe procedures as necessary to implement this section.

(f)iiThe dealer may charge a reasonable fee not to exceed $20 for costs associated with complying with this section.

Sec.i503.0632.iiNOTICE TO BUYER. (a)iiEach dealer shall provide a one-page written notice to a buyer that explains:

(1)iithe requirements of the law regarding a buyer's temporary cardboard tag;

(2)iiany criminal penalties relating to a buyer's temporary cardboard tag;

(3)iiany action the buyer is required to take concerning a buyer's temporary cardboard tag; and

(4)iiany other information related to the process of purchasing and registering a vehicle as prescribed by the department.

(b)iiThe dealer shall require the buyer to sign a statement indicating the buyer received the notice under this section.

(c)iiThe department shall adopt rules to:

(1)iiprescribe the specifications and form of the written notice and statement used under this section; and

(2)iiestablish a procedure to determine dealer compliance with this section.

SECTIONi8.07.iiThe heading to Section 503.067, Transportation Code, is amended to read as follows:

Sec.i503.067.iiUNAUTHORIZED REPRODUCTION, PURCHASE, USE, OR SALE OF TEMPORARY CARDBOARD TAGS.

SECTIONi8.08.iiSection 503.067, Transportation Code, is amended by amending Subsection (a) and adding Subsections (c) and (d) to read as follows:

(a)iiA person [other than a dealer] may not produce or reproduce a [buyer's or dealer's] temporary cardboard tag or an item represented to be a temporary cardboard tag for the purpose of distributing the tag to someone other than a dealer or converter.

(c)iiA person other than a dealer or converter may not purchase a temporary cardboard tag.

(d)iiA person may not sell or distribute a temporary cardboard tag or an item represented to be a temporary cardboard tag unless the person is:

(1)iia dealer issuing the tag in connection with the sale of a vehicle; or

(2)iia printer or distributor engaged in the business of selling temporary cardboard tags solely for uses authorized under this chapter.

SECTIONi8.09.iiSection 503.094, Transportation Code, is amended by amending Subsection (b) and adding Subsection (d) to read as follows:

5162 80th Legislature — Regular Session 68th Day


(b)iiExcept as otherwise provided by this section, an [An] offense under this section is a misdemeanor punishable by a fine of not less than $50 or more than $5,000.

(d)iiAn offense involving a violation of:

(1)iiSection 503.067(b) or (c) is a Class C misdemeanor;

(2)iiSection 503.067(d) is a Class A misdemeanor;

(3)iiSection 503.067(a) is a state jail felony; and

(4)iiSection 503.067(b), (c), or (d) is a state jail felony if the person who committed the offense criminally conspired to engage in organized criminal activity.

SECTIONi8.10.iiSubsection (a), Section 2301.651, Occupations Code, is amended to read as follows:

(a)iiThe board may deny an application for a license, revoke or suspend a license, place on probation a person whose license has been suspended, or reprimand a license holder if the applicant or license holder:

(1)iiis unfit under standards described in this chapter or board rules;

(2)iimakes a material misrepresentation in any application or other information filed under this chapter or board rules;

(3)iiviolates this chapter or a board rule or order;

(4)iiviolates any law relating to the sale, distribution, financing, or insuring of motor vehicles;

(5)iifails to maintain the qualifications for a license;

(6)iiwilfully defrauds a purchaser; [or]

(7)iifails to fulfill a written agreement with a retail purchaser of a motor vehicle; or

(8)iiviolates the requirements of Section 503.0631, Transportation Code.

SECTIONi8.11.ii(a)iiAs soon as practicable after the effective date of this Act, the Texas Department of Transportation shall adopt rules to implement Sections 503.0626 and 503.0631, Transportation Code, as added by this article.

(b)iiThe Texas Department of Transportation may not enforce Section 503.0626 or 503.0631, Transportation Code, as added by this article, until the rules adopted under Subsection (a) of this section take effect and the databases are operational and available to dealers with a general distinguishing number or a converter's license issued under Chapter 2301, Occupations Code.

SECTIONi8.12.iiThe changes in law made by this article to Sections 503.067 and 503.094, Transportation Code, apply to an offense committed on or after the effective date of this Act. An offense committed before the effective date of this Act is governed by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense was committed before the effective date of this Act if any element of the offense was committed before that date.

ARTICLE 9. INFORMATION PROVIDED BY CRITICAL INFRASTRUCTURE ENTITIES

SECTIONi9.01.iiSubchapter B, Chapter 21, Property Code, is amended by adding Section 21.024 to read as follows:

Saturday, May 26, 2007 SENATE JOURNAL 5163


Sec.i21.024.iiPRODUCTION OF INFORMATION BY CERTAIN ENTITIES CONSIDERED TO BE CRITICAL INFRASTRUCTURE. (a)iiA utility, a common carrier, or a transporter of oil, gas, or the products of oil or gas is considered to be within the definition of critical infrastructure under Section 421.001, Government Code. Notwithstanding any other law, an entity which is considered critical infrastructure and which is authorized by law to take private property through the use of eminent domain is required to produce information as provided by this section if the information is requested by a person who owns property that is the subject of a proposed or existing eminent domain proceeding, but only if the information is related to the taking of the person's private property by the entity through the use of eminent domain.

(b)iiAn entity described by Subsection (a) is required under this section only to produce information relating to the condemnation of the specific property owned by the requestor as described in the request. A request under this section must contain sufficient details to allow the entity to identify the specific tract of land in relation to which the information is sought.

(c)iiThe entity shall respond to a request in accordance with the Texas Rules of Civil Procedure as if the request was made in a matter pending before a state district court.

(d)iiExceptions to disclosure provided by this chapter and the Texas Rules of Civil Procedure apply to the disclosure of information under this section.

(e)iiJurisdiction to enforce the provisions of this section resides in:

(1)iithe court in which the condemnation was initiated; or

(2)iiif the condemnation proceeding has not been initiated:

(A)iia court that would have jurisdiction over a proceeding to condemn the requestor's property; or

(B)iia court in the county in which the entity has its principal place of business that has jurisdiction over condemnation proceedings under this chapter.

(f)iiIf the entity refuses to produce information requested in accordance with this section and the court determines the refusal violates this section, the court may award the requestor's reasonable attorney's fees incurred to compel the production of the information.

(g)iiIf an entity that received a request in accordance with this section does not produce the requested information on or before the 30th day after the request is made, the attorney general may file an action in a court described by Subsection (e) to enforce this section on the request of the person who made the request for the information. If the court determines that the failure to produce the information is a violation of this section, the court may award the attorney general's reasonable expenses incurred to compel the production of the information.

(h)iiIf the attorney general files an action under Subsection (g), the person who requested that the attorney general file the action may not file a private action to enforce this section with respect to the same request for information.

(i)iiSection 552.0037, Government Code, does not apply in relation to those entities described in Subsection (a).

5164 80th Legislature — Regular Session 68th Day


ARTICLE 10. LEAVE OF ABSENCE FOR URBAN SEARCH AND RESCUE TEAMS

SECTIONi10.01.iiSection 431.005, Government Code, is amended to read as follows:

Sec.i431.005.iiLEAVE OF ABSENCE FOR PUBLIC OFFICERS AND EMPLOYEES. (a)iiExcept as provided by Subsection (b), a person who is an officer or employee of the state, a municipality, a county, or another political subdivision of the state and who is a member of the state military forces, [or] a reserve component of the armed forces, or a member of a state or federally authorized Urban Search and Rescue Team is entitled to a paid leave of absence from the person's duties on a day on which the person is engaged in authorized training or duty ordered or authorized by proper authority for not more than 15 workdays in a federal fiscal year. During a leave of absence the person may not be subjected to loss of time, efficiency rating, personal time, sick leave, or vacation time.

(b)iiA member of the legislature is entitled to pay for all days that the member is absent from a session of the legislature and engaged in training and duty as provided by Subsection (a).

(c)iiA state employee who is a member of the state military forces, [or] a reserve component of the armed forces, or a member of a state or federally authorized Urban Search and Rescue Team and who is ordered to duty by proper authority is entitled, when relieved from duty, to be restored to the position that the employee held when ordered to duty.

ARTICLE 11. LICENSE PLATES FOR THE MILITARY

SECTIONi11.01.iiSubchapter D, Chapter 504, Transportation Code, is amended by adding Section 504.3011 to read as follows:

Sec.i504.3011.iiDESIGN OF CERTAIN LICENSE PLATES FOR THE MILITARY. (a)iiLicense plates issued under Section 504.303 must at a minimum bear a color depiction of the emblem of the appropriate branch of the United States armed forces.

(b)iiLicense plates issued under Section 504.308(a) or 504.315(e), (f), or (g) must at a minimum bear a color depiction of the appropriate medal.

(c)iiThe department shall design license plates to which this section applies in consultation with veterans organizations.

ARTICLE 12. IMMUNIZATION RECORDS OF FIRST RESPONDERS AND RECORDS OBTAINED DURING CERTAIN DISASTERS

SECTIONi12.01.iiSection 161.0001, Health and Safety Code, is amended by amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) to read as follows:

(1)ii"Data elements" means the information:

(A)iia health care provider who administers a vaccine is required to record in a medical record under 42 U.S.C. Section 300aa-25, as amended, including:

(i)i[(A)]iithe date the vaccine is administered;

(ii)i[(B)]iithe vaccine manufacturer and lot number of the vaccine;

(iii)iiany adverse or unexpected events for a vaccine; and

(iv)i[(C)]iithe name, the address, and if appropriate, the title of the health care provider administering the vaccine; and

(B)iispecified in rules adopted to implement Section 161.00705.

Saturday, May 26, 2007 SENATE JOURNAL 5165


(1-a)ii"First responder" has the meaning assigned by Section 421.095, Government Code.

(1-b)ii"Immediate family member" means the parent, spouse, child, or sibling of a person who resides in the same household as the person.

SECTIONi12.02.iiSubchapter A, Chapter 161, Health and Safety Code, is amended by adding Sections 161.00705, 161.00706, and 161.00707 to read as follows:

Sec.i161.00705.iiRECORDING ADMINISTRATION OF IMMUNIZATION AND MEDICATION FOR DISASTERS AND EMERGENCIES. (a)iiThe department shall maintain a registry of persons who receive an immunization, antiviral, and other medication administered to prepare for a potential disaster, public health emergency, terrorist attack, hostile military or paramilitary action, or extraordinary law enforcement emergency or in response to a declared disaster, public health emergency, terrorist attack, hostile military or paramilitary action, or extraordinary law enforcement emergency. A health care provider who administers an immunization, antiviral, or other medication shall provide the data elements to the department.

(b)iiThe department shall maintain the registry as part of the immunization registry required by Section 161.007.

(c)iiThe department shall track adverse reactions to an immunization, antiviral, and other medication administered to prepare for a potential disaster, public health emergency, terrorist attack, hostile military or paramilitary action, or extraordinary law enforcement emergency or in response to a declared disaster, public health emergency, terrorist attack, hostile military or paramilitary action, or extraordinary law enforcement emergency. A health care provider who administers an immunization, antiviral, or other medication may provide data related to adverse reactions to the department.

(d)iiSections 161.007, 161.0071, 161.0072, and 161.0074 apply to the data elements submitted to the department under this section, unless a provision in those sections conflicts with a requirement in this section.

(e)iiThe executive commissioner of the Health and Human Services Commission by rule shall determine the period during which the information collected under this section must remain in the immunization registry following the end of the disaster, public health emergency, terrorist attack, hostile military or paramilitary action, or extraordinary law enforcement emergency.

(f)iiUnless an individual or, if a child, the child's parent, managing conservator, or guardian consents in writing to continued inclusion of the child's or other individual's information in the registry, the department shall remove the immunization records collected under this section from the registry on expiration of the period prescribed under Subsection (e).

(g)iiThe immunization information of a child or other individual received by the department under this section, including individually identifiable information, may be released only:

(1)iion consent of the individual or, if a child, the child's parent, managing conservator, or guardian; or

5166 80th Legislature — Regular Session 68th Day


(2)iito a state agency or health care provider consistent with the purposes of this subchapter or the purposes of aiding or coordinating communicable disease prevention and control efforts during a declared disaster, public health emergency, terrorist attack, hostile military or paramilitary action, or extraordinary law enforcement emergency.

(h)iiThe report required under Section 161.0074 must also include the number of complaints received by the department related to the department's failure to remove information from the registry as required by Subsection (f).

(i)iiThe executive commissioner of the Health and Human Services Commission shall adopt rules necessary to implement this section.

Sec.i161.00706.iiFIRST RESPONDER IMMUNIZATION INFORMATION. (a)iiA person 18 years of age or older who is a first responder or an immediate family member of a first responder may:

(1)iirequest that a health care provider who administers an immunization to the person provide data elements regarding the immunization to the department for inclusion in the immunization registry; or

(2)iiprovide the person's immunization history directly to the department for inclusion in the immunization registry.

(b)iiA health care provider, on receipt of a request under Subsection (a)(1), shall submit the data elements to the department in a format prescribed by the department. The department shall verify the person's request before including the information in the immunization registry.

(c)iiThe executive commissioner of the Health and Human Services Commission shall:

(1)iidevelop rules to ensure that immunization history submitted under Subsection (a)(2) is medically verified immunization information;

(2)iidevelop guidelines for use by the department in informing first responders about the registry; and

(3)iiadopt rules necessary for the implementation of this section.

(d)iiA person's immunization history or data received by the department under this section may be released only on consent of the person or to any health care provider licensed or otherwise authorized to administer vaccines.

(e)iiA person whose immunization records are included in the immunization registry as authorized by this section may request in writing that the department remove that information from the registry. Not later than the 10th day after receiving a request under this subsection, the department shall remove the person's immunization records from the registry.

(f)iiThe report required under Section 161.0074 must also include the number of complaints received by the department related to the department's failure to comply with requests for removal of information from the registry under Subsection (e).

Sec.i161.00707.iiINFORMATION AND EDUCATION FOR FIRST RESPONDERS. The department shall develop a program for informing first responders about the immunization registry and educating first responders about the benefits of being included in the immunization registry, including:

Saturday, May 26, 2007 SENATE JOURNAL 5167


(1)iiensuring that first responders receive necessary immunizations to prevent the spread of communicable diseases to which a first responder may be exposed during a public health emergency, declared disaster, terrorist attack, hostile military or paramilitary action, or extraordinary law enforcement emergency; and

(2)iipreventing duplication of vaccinations.

SECTIONi12.03.iiSection 161.007, Health and Safety Code, is amended by amending Subsections (a), (b), and (j) and adding Subsection (b-1) to read as follows:

(a)iiThe department, for the primary purpose [purposes] of establishing and maintaining a single repository of accurate, complete, and current immunization records to be used in aiding, coordinating, and promoting efficient and cost-effective childhood communicable disease prevention and control efforts, shall establish and maintain an [a childhood] immunization registry. The department by rule shall develop guidelines to:

(1)iiprotect the confidentiality of patients in accordance with Section 159.002, Occupations Code;

(2)iiinform a parent, managing conservator, or guardian of each patient younger than 18 years of age about the registry;

(3)iirequire the written consent of a parent, managing conservator, or guardian of a patient younger than 18 years of age before any information relating to the patient is included in the registry; [and]

(4)iipermit a parent, managing conservator, or guardian of a patient younger than 18 years of age to withdraw consent for the patient to be included in the registry; and

(5)iidetermine the process by which consent is verified, including affirmation by a health care provider, birth registrar, regional health information exchange, or local immunization registry that consent has been obtained.

(b)iiThe [childhood] immunization registry must contain information on the immunization history that is obtained by the department under:

(1)iithis section of each person who is younger than 18 years of age and for whom consent has been obtained in accordance with guidelines adopted under Subsection (a);

(2)iiSection 161.00705 of persons immunized to prepare for or in response to a declared disaster, public health emergency, terrorist attack, hostile military or paramilitary action, or extraordinary law enforcement emergency; and

(3)iiSection 161.00706 of first responders or their immediate family members.

(b-1)iiThe department shall remove from the registry information for any person for whom consent has been withdrawn. The department may not retain individually identifiable information about any person:

(1)iifor whom consent has been withdrawn;

(2)iifor whom a consent for continued inclusion in the registry following the end of the declared disaster, public health emergency, terrorist attack, hostile military or paramilitary action, or extraordinary law enforcement emergency has not been received under Section 161.00705(f); or

(3)iifor whom a request to be removed from the registry has been received under Section 161.00706(e).

5168 80th Legislature — Regular Session 68th Day


(j)iiExcept as provided by Sections 161.00705, 161.00706, and [Section] 161.008, information obtained by the department for the immunization registry is confidential and may be disclosed only with the written consent of the individual or, if a child, the child's parent, managing conservator, or guardian.

SECTIONi12.04.iiSubsections (a) and (c), Section 161.0073, Health and Safety Code, are amended to read as follows:

(a)iiExcept as provided by Section 161.00705, [The] information that individually identifies a child or other individual that is received by the department for the immunization registry is confidential and may be used by the department for registry purposes only.

(c)iiA person required to report information to the department for registry purposes or authorized to receive information from the registry may not disclose the individually identifiable information of a child or other individual to any other person without written consent of the individual or, if a child, the parent, managing conservator, or guardian of the child, except as provided by Chapter 159, Occupations Code, or Section 602.053, Insurance Code.

SECTIONi12.05.iiSection 161.0075, Health and Safety Code, is amended to read as follows:

Sec.i161.0075.iiIMMUNITY FROM LIABILITY. Except as provided by Section 161.009, the following persons subject to this subchapter that act in compliance with Sections 161.007, 161.00705, 161.00706, 161.0071, 161.0073, 161.0074, and 161.008 are not civilly or criminally liable for furnishing the information required under this subchapter:

(1)iia payor;

(2)iia health care provider who administers immunizations; and

(3)iian employee of the department.

SECTIONi12.06.iiSubsection (a), Section 161.009, Health and Safety Code, is amended to read as follows:

(a)iiA person commits an offense if the person:

(1)iinegligently releases or discloses immunization registry information in violation of Section 161.007, 161.0071, 161.0073, or 161.008;

(2)iifails to exclude a child's immunization information in violation of Section 161.0071; [or]

(3)iifails to remove a person's immunization information in violation of Section 161.00705 or 161.00706; or

(4)iinegligently uses information in the immunization registry to solicit new patients or clients or for other purposes that are not associated with immunization or quality-of-care purposes, unless authorized under this section.

SECTIONi12.07.iiSubchapter A, Chapter 161, Health and Safety Code, is amended by adding Section 161.0102 to read as follows:

Sec.i161.0102.iiDISASTER PREPARATION. The department shall consult with public health departments and appropriate health care providers to identify adult immunizations that may be necessary to respond to or prepare for a disaster or public health emergency, terrorist attack, hostile military or paramilitary action, or extraordinary law enforcement emergency.

Saturday, May 26, 2007 SENATE JOURNAL 5169


SECTIONi12.08.iiSubsection (a), Section 161.0105, Health and Safety Code, is amended to read as follows:

(a)iiA health care provider who acts in compliance with Sections 161.007, 161.00705, 161.00706, and 161.008 and any rules adopted under those sections is not civilly or criminally liable for furnishing the information required under those sections. This subsection does not apply to criminal liability established under Section 161.009.

SECTIONi12.09.iiAs soon as practicable after the effective date of this Act, the executive commissioner of the Health and Human Services Commission shall adopt the rules required under Sections 161.00705 and 161.00706, Health and Safety Code, as added by this article.

SECTIONi12.10.iiThe change in law made by this article to Section 161.009, Health and Safety Code, applies only to an offense committed on or after the effective date of this Act. An offense committed before the effective date of this Act is covered by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For the purposes of this section, an offense was committed before the effective date of this Act if any element of the offense was committed before that date.

ARTICLE 13. HIGH PRIORITY ACTIVITY FUNDS

SECTIONi13.01.iiSection 644.102, Transportation Code, is amended by amending Subsection (b) and adding Subsection (b-1) to read as follows:

(b)iiA municipality or county that engages in enforcement under this chapter:

(1)iishall pay all costs relating to the municipality's or county's enforcement;

(2)iimay not be considered, in the context of a federal grant related to this chapter:

(A)iia party to a federal grant agreement, except as provided by Subsection (b-1); or

(B)iia grantee under a federal grant to the department; and

(3)iimust comply with the standards established under Subsection (a).

(b-1)iiSubsection (b) does not prohibit a municipality or county from receiving High Priority Activity Funds provided under the federal Motor Carrier Safety Assistance Program.

ARTICLE 14. DISEASE MANAGEMENT

SECTIONi14.01.iiSection 81.082, Health and Safety Code, is amended by adding Subsection (c-1) to read as follows:

(c-1)iiA health authority may designate health care facilities within the health authority's jurisdiction that are capable of providing services for the examination, observation, quarantine, isolation, treatment, or imposition of control measures during a public health disaster or during an area quarantine under Section 81.085. A health authority may not designate a nursing home or other institution licensed under Chapter 242.

SECTIONi14.02.iiSection 81.083, Health and Safety Code, is amended by adding Subsections (k) and (l) to read as follows:

(k)iiIf the department or a health authority has reasonable cause to believe that a group of five or more individuals has been exposed to or infected with a communicable disease, the department or health authority may order the members of

5170 80th Legislature — Regular Session 68th Day


the group to implement control measures that are reasonable and necessary to prevent the introduction, transmission, and spread of the disease in this state. If the department or health authority adopts control measures under this subsection, each member of the group is subject to the requirements of this section.

(l)iiAn order under Subsection (k) must be in writing and be delivered personally or by registered or certified mail to each member of the group, or the member's parent, legal guardian, or managing conservator if the member is a minor. If the name, address, and county of residence of any member of the group is unknown at the time the order is issued, the department or health authority must publish notice in a newspaper of general circulation in the county that includes the area of the suspected exposure and any other county in which the department or health authority suspects a member of the group resides. The notice must contain the following information:

(1)iithat the department or health authority has reasonable cause to believe that a group of individuals is ill with, has been exposed to, or is the carrier of a communicable disease;

(2)iithe suspected time and place of exposure to the disease;

(3)iia copy of any orders under Subsection (k);

(4)iiinstructions to an individual to provide the individual's name, address, and county of residence to the department or health authority if the individual knows or reasonably suspects that the individual was at the place of the suspected exposure at the time of the suspected exposure;

(5)iithat the department or health authority may request that an application for court orders under Subchapter G be filed for the group, if applicable; and

(6)iithat a criminal penalty applies to an individual who:

(A)iiis a member of the group; and

(B)iiknowingly refuses to perform or allow the performance of the control measures in the order.

SECTIONi14.03.iiSection 81.151, Health and Safety Code, is amended by adding Subsection (e) to read as follows:

(e)iiA single application may be filed for a group if:

(1)iithe department or health authority reasonably suspects that a group of five or more persons has been exposed to or infected with a communicable disease; and

(2)iieach person in the group meets the criteria of this chapter for court orders for the management of a person with a communicable disease.

SECTIONi14.04.iiSubchapter G, Chapter 81, Health and Safety Code, is amended by adding Section 81.1511 to read as follows:

Sec.i81.1511.iiAPPLICABILITY OF SUBCHAPTER TO GROUP. To the extent possible, and except as otherwise provided, if a group application is filed under Section 81.151(e), the provisions of this subchapter apply to the group in the same manner as they apply to an individual, except that:

(1)iiexcept as provided by Subdivision (2), any statement or determination regarding the conduct or status of a person must be made in regard to the majority of the members of the group;

(2)iiany finding or statement related to compliance with orders under Section 81.083 must be made for the entire group;

Saturday, May 26, 2007 SENATE JOURNAL 5171


(3)iiany notice required to be provided to a person must:

(A)iiin addition to being sent to each individual in the group for whom the department or health authority has an address, be published in a newspaper of general circulation in the county that includes the area of the suspected contamination and any other county in which the department or health authority suspects a member of the group resides;

(B)iistate that the group is appointed an attorney but that a member of the group is entitled to the member's own attorney on request; and

(C)iiinclude instructions for any person who reasonably suspects that the person was at the place of the suspected exposure at the time of the suspected exposure to provide the person's name, address, and county of residence to the department or health authority; and

(4)iian affidavit of medical evaluation for the group may be based on evaluation of one or more members of the group if the physician reasonably believes that the condition of the individual or individuals represents the condition of the majority of the members of the group.

SECTIONi14.05.iiSection 81.152, Health and Safety Code, is amended by adding Subsection (d) to read as follows:

(d)iiA group application must contain the following information according to the applicant's information and belief:

(1)iia description of the group and the location where the members of the group may be found;

(2)iia narrative of how the group has been exposed or infected;

(3)iian estimate of how many persons are included in the group;

(4)iito the extent known, a list containing the name, address, and county of residence in this state of each member of the group;

(5)iiif the applicant is unable to obtain the name and address of each member of the group:

(A)iia statement that the applicant has sought each of the unknown names and addresses; and

(B)iithe reason that the names and addresses are unavailable; and

(6)iia statement, to be included only in an application for inpatient treatment, that the members of the group fail or refuse to comply with written orders of the department or health authority under Section 81.083, if applicable.

SECTIONi14.06.iiSubchapter G, Chapter 81, Health and Safety Code, is amended by adding Section 81.1531 to read as follows:

Sec.i81.1531.iiAPPOINTMENT OF ATTORNEY FOR GROUP. (a)iiA judge shall appoint an attorney to represent a group identified in a group application under Section 81.151(e) and shall appoint an attorney for each person who is listed in the application if requested by a person in the group who does not have an attorney.

(b)iiTo the extent possible, the provisions of this chapter that apply to an individual's attorney apply to a group's attorney.

SECTIONi14.07.iiSubsection (a), Section 81.159, Health and Safety Code, is amended to read as follows:

5172 80th Legislature — Regular Session 68th Day


(a)iiThe commissioner shall designate health care facilities throughout the state that are capable of providing services for the examination, observation, isolation, or treatment of persons having or suspected of having a communicable disease. However, the commissioner may not designate:

(1)iia nursing home or custodial care home required to be licensed under Chapter 242; or

(2)iian intermediate care facility for the mentally retarded required to be licensed under Chapter 252.

SECTIONi14.08.iiSection 81.162, Health and Safety Code, is amended by adding Subsections (f) and (g) to read as follows:

(f)iiNotwithstanding Section 81.161 or Subsection (c), a judge or magistrate may issue a temporary protective custody order before the filing of an application for a court order for the management of a person with a communicable disease under Section 81.151 if:

(1)iithe judge or magistrate takes testimony that an application under Section 81.151, together with a motion for protective custody under Section 81.161, will be filed with the court on the next business day; and

(2)iithe judge or magistrate determines based on evidence taken under Subsection (d) that there is probable cause to believe that the person presents a substantial risk of serious harm to himself or others to the extent that the person cannot be at liberty pending the filing of the application and motion.

(g)iiA temporary protective custody order issued under Subsection (f) may continue only until 4 p.m. on the first business day after the date the order is issued unless the application for a court order for the management of a person with a communicable disease and a motion for protective custody, as described by Subsection (f)(1), are filed at or before that time. If the application and motion are filed at or before 4 p.m. on the first business day after the date the order is issued, the temporary protective custody order may continue for the period reasonably necessary for the court to rule on the motion for protective custody.

SECTIONi14.09.iiSubsections (b) and (d), Section 81.165, Health and Safety Code, are amended to read as follows:

(b)iiThe hearing must be held not later than 72 hours after the time that the person was detained under the protective custody order. If the period ends on a Saturday, Sunday, or legal holiday, the hearing must be held on the next day that is not a Saturday, Sunday, or legal holiday. The judge or magistrate may postpone the hearing for an additional 24 hours if the judge or magistrate declares that an extreme emergency exists because of extremely hazardous weather conditions that threaten the safety of the person or another essential party to the hearing. If the area in which the person is found, or the area where the hearing will be held, is under a public health disaster, the judge or magistrate may postpone the hearing until the period of disaster is ended.

(d)iiThe person and his attorney shall have an opportunity at the hearing to appear and present evidence to challenge the allegation that the person presents a substantial risk of serious harm to himself or others. If the health authority advises the court that the person must remain in isolation or quarantine and that exposure to the judge, jurors, or the public would jeopardize the health and safety of those persons

Saturday, May 26, 2007 SENATE JOURNAL 5173


and the public health, a magistrate or a master may order that a person entitled to a hearing for a protective custody order may not appear in person and may appear only by teleconference or another means the magistrate or master finds appropriate to allow the person to speak, to interact with witnesses, and to confer with the person's attorney.

SECTIONi14.10.iiSubsections (b) and (c), Section 81.167, Health and Safety Code, are amended to read as follows:

(b)iiA person under a protective custody order shall be detained in an appropriate inpatient health facility that has been designated by the commissioner or by a health authority and selected by the health authority under Section 81.159.

(c)iiA person under a protective custody order may be detained in a nonmedical facility used to detain persons who are charged with or convicted of a crime only with the consent of the medical director of the facility and only if the facility has respiratory isolation capability for airborne communicable diseases. The person may not be detained in a nonmedical facility under this subsection for longer than 72 hours, excluding Saturdays, Sundays, legal holidays, [and] the period prescribed by Section 81.165(b) for an extreme weather emergency, and the duration of a public health disaster. The person must be isolated from any person who is charged with or convicted of a crime.

SECTIONi14.11.iiSubsection (c), Section 81.168, Health and Safety Code, is amended to read as follows:

(c)iiThe head of a facility shall discharge a person held under a protective custody order if:

(1)iithe head of the facility does not receive notice within 72 hours after detention begins, excluding Saturdays, Sundays, legal holidays, [and] the period prescribed by Section 81.165(b) for an extreme weather emergency, and the duration of a public health disaster, that a probable cause hearing was held and the person's continued detention was authorized;

(2)iia final court order for the management of a person with a communicable disease has not been entered within the time prescribed by Section 81.154; or

(3)iithe health authority or commissioner determines that the person no longer meets the criteria for protective custody prescribed by Section 81.162.

SECTIONi14.12.iiSection 81.169, Health and Safety Code, is amended by adding Subsection (i) to read as follows:

(i)iiNotwithstanding Subsection (d), if the health authority advises the court that the person must remain in isolation or quarantine and that exposure to the judge, jurors, or the public would jeopardize the health and safety of those persons and the public health, a judge may order that a person entitled to a hearing may not appear in person and may appear only by teleconference or another means that the judge finds appropriate to allow the person to speak, to interact with witnesses, and to confer with the person's attorney.

SECTIONi14.13.iiSection 81.176, Health and Safety Code, is amended to read as follows:

5174 80th Legislature — Regular Session 68th Day


Sec.i81.176.iiDESIGNATION OF FACILITY. In a court order for the temporary or extended management of a person with a communicable disease specifying inpatient care, the court shall commit the person to a health care facility designated by the commissioner or a health authority in accordance with Section 81.159.

SECTIONi14.14.iiSection 81.177, Health and Safety Code, is amended to read as follows:

Sec.i81.177.iiCOMMITMENT TO PRIVATE FACILITY. (a)iiThe court may order a person committed to a private health care facility at no expense to the state if the court receives:

(1)iian application signed by the person or the person's guardian or next friend requesting that the person be placed in a designated private health care facility at the person's or applicant's expense; and

(2)iia written agreement from the head of the private health care facility to admit the person and to accept responsibility for the person in accordance with this chapter.

(b)iiConsistent with Subsection (a), the court may order a person committed to a private health care facility at no expense to the state, a county, a municipality, or a hospital district if:

(1)iia state of disaster or a public health disaster has been declared or an area quarantine is imposed under Section 81.085;

(2)iithe health care facility is located within the disaster area or area quarantine, as applicable; and

(3)iithe judge determines that there is no public health care facility within the disaster area or area quarantine, as applicable, that has appropriate facilities and the capacity available to receive and treat the person.

(c)iiNothing in this section prevents a health care facility that accepts a person under this section from pursuing reimbursement from any appropriate source, such as a third-party public or private payor or disaster relief fund.

ARTICLE 15. CERTAIN MUTUAL ASSISTANCE AGREEMENTS

SECTIONi15.01.iiSection 51.212, Education Code, is amended to read as follows:

Sec.i51.212.iiPEACE [SECURITY] OFFICERS AT PRIVATE INSTITUTIONS. (a)iiThe governing boards of private institutions of higher education, including private junior colleges, are authorized to employ and commission peace officers [campus security personnel] for the purpose of enforcing:

(1)iistate law [the law of this state] on the campuses of private institutions of higher education; and

(2)iistate and local law, including applicable municipal ordinances, at other locations, as permitted by Subsection (b) or Section 51.2125.

(b)iiAny officer commissioned under the provisions of this section is vested with all the powers, privileges, and immunities of peace officers if the officer:

(1)iiis [while] on the property under the control and jurisdiction of the respective private institution of higher education or is otherwise performing [in the performance of his assigned] duties assigned to the officer by the institution, regardless of whether the officer is on property under the control and jurisdiction of

Saturday, May 26, 2007 SENATE JOURNAL 5175


the institution, but provided these duties are consistent with the educational mission of the institution and are being performed within a county in which the institution has land; or

(2)iito the extent authorized by Section 51.2125, is:

(A)iirequested by another law enforcement agency to provide assistance in enforcing state or local law, including a municipal ordinance, and is acting in response to that request; or

(B)iiotherwise assisting another law enforcement agency in enforcing a law described by Paragraph (A).

(c)iiAny officer assigned to duty and commissioned shall take and file the oath required of peace officers, and shall execute and file a good and sufficient bond in the sum of $1,000, payable to the governor, with two or more good and sufficient sureties, conditioned that the officer [he] will fairly, impartially, and faithfully perform the duties as may be required of the officer [him] by law. The bond may be sued on from time to time in the name of the person injured until the whole amount is recovered.

(d)i[(b)]iiThe governing boards of private institutions of higher education are authorized to hire and pay on a regular basis peace [law-enforcement] officers commissioned by an incorporated city. The officers shall be under the supervision of the hiring institution, but shall be subject to dismissal and disciplinary action by the city. An incorporated city is authorized to contract with a private institution of higher education for the use and employment of its commissioned officers in any manner agreed to, provided that there is no expense incurred by the city.

(e)i[(c)]iiIn this section, "private institution of higher education" means a private or independent institution of higher education as defined [has the meaning assigned] by Section 61.003 [61.003(15) of this code].

SECTIONi15.02.iiSubchapter E, Chapter 51, Education Code, is amended by adding Sections 51.2125 and 51.2126 to read as follows:

Sec.i51.2125.iiPRIVATE INSTITUTIONS: AUTHORITY TO ENTER INTO MUTUAL ASSISTANCE AGREEMENT. (a)iiThis section applies only to a private institution of higher education that has a fall head count enrollment of more than 10,000 students and that has under its control and jurisdiction property that is contiguous to, or located in any part within the boundaries of, a municipality with a population of more than one million. For purposes of this section, a private institution of higher education is a private or independent institution of higher education as defined by Section 61.003.

(b)iiIn addition to exercising the authority provided under Section 51.212(d), the governing board of a private institution of higher education to which this section applies and the governing body of each municipality, regardless of the municipality's population, that is contiguous to, or the boundaries of which contain any part of, property under the control and jurisdiction of the private institution of higher education may enter into a written mutual assistance agreement in which peace officers commissioned by the institution or the applicable municipality serve the public interest by assisting, without any form of additional compensation or other financial benefit, the peace officers of the other party to the agreement in enforcing state or local law, including applicable municipal ordinances. The agreement must be

5176 80th Legislature — Regular Session 68th Day


reviewed at least annually by the institution and the municipality and may be modified at that time by a written agreement signed by each party. The agreement may be terminated at any time by a party to the agreement on the provision of reasonable notice to the other party to the agreement.

(c)iiA mutual assistance agreement authorized by this section may designate the geographic area in which the campus peace officers are authorized to provide assistance to the peace officers of the municipality, except that if the agreement is entered into with a municipality with a population of more than one million, the designated geographic area consists of each of the election districts of the municipality's governing body that contains any part of the campus of the institution and each of the election districts of the governing body that is contiguous to another municipality that contains any part of the campus of the institution.

(d)iiThis section does not affect a municipality's duty to provide law enforcement services to any location within the boundaries of the municipality.

(e)iiA peace officer providing assistance under a mutual assistance agreement authorized by this section may make arrests and exercise all other authority given to peace officers under other state law. The municipal law enforcement agency has exclusive authority to supervise any campus peace officer operating under the agreement to assist the peace officers of the municipality. A municipal peace officer operating under the agreement to assist the campus peace officers remains under the supervision of the municipal law enforcement agency.

(f)iiIn the same manner and to the same extent as a municipality is liable for an act or omission of a peace officer employed by the municipality, a private institution of higher education is liable for an act or omission of a campus peace officer operating under a mutual assistance agreement authorized by this section at a location other than property under the control and jurisdiction of the institution.

(g)iiThis section does not limit the authority of a campus peace officer to make a warrantless arrest outside the officer's jurisdiction as described by Article 14.03(d), Code of Criminal Procedure.

Sec.i51.2126.iiAPPEAL BY CAMPUS PEACE OFFICER OF DISCIPLINARY ACTION OR PROMOTIONAL BYPASS RELATED TO PROVISION OF ASSISTANCE UNDER MUTUAL ASSISTANCE AGREEMENT. (a)iiA campus peace officer acting under a mutual assistance agreement authorized by Section 51.2125 who is demoted, suspended, or terminated by the applicable private institution of higher education or who experiences a promotional bypass by the institution may elect to appeal the institution's action to an independent third party hearing examiner under this section.

(b)iiTo elect to appeal to an independent third party hearing examiner under this section, the campus peace officer must submit to the head of the institution's law enforcement agency not later than the 30th day after the date of the action being appealed a written request stating the officer's decision to appeal to such a hearing examiner.

Saturday, May 26, 2007 SENATE JOURNAL 5177


(c)iiThe hearing examiner's decision is final and binding on all parties. If a campus peace officer elects to appeal the institution's action to an independent third party hearing examiner under this section, the officer or institution may appeal the examiner's decision to a district court only as provided by Subsection (j).

(d)iiIf a campus peace officer elects to appeal to a hearing examiner, the officer and the head of the institution's law enforcement agency or their designees shall attempt to agree on the selection of an impartial hearing examiner. If the parties do not agree on the selection of a hearing examiner before the 10th day after the date the appeal is filed, the parties immediately shall request a list of seven qualified neutral arbitrators from the American Arbitration Association or the Federal Mediation and Conciliation Service, or their successors in function. The officer and the agency head or their designees may agree on one of the seven neutral arbitrators on the list. If the parties do not agree before the fifth business day after the date the parties receive the list, the parties or their designees shall alternate striking a name from the list, and the single name remaining after all other names have been struck is selected as the hearing examiner. The parties or their designees shall agree on a date for the hearing.

(e)iiThe appeal hearing must begin as soon as an appearance by the hearing examiner can be scheduled. If the hearing examiner cannot begin the hearing before the 45th day after the date of selection, the campus peace officer may, within 48 hours after learning of that fact, call for the selection of a new hearing examiner using the procedure prescribed by Subsection (d).

(f)iiIn a hearing conducted under this section, the hearing examiner has the same duties and powers that a civil service commission has in conducting a hearing or hearing an appeal under Chapter 143, Local Government Code, including the right to issue subpoenas. The hearing examiner may:

(1)iiorder that the campus peace officer be reinstated to the same position or status in which the officer was employed immediately before the demotion, suspension, or termination or, in the case of a promotional bypass, to the position or status with respect to which the officer experienced the bypass; and

(2)iiaward the officer lost wages and any other compensation lost as a result of the disciplinary action or promotional bypass, as applicable.

(g)iiIn a hearing conducted under this section, the parties may agree to an expedited hearing procedure. Unless otherwise agreed by the parties, in an expedited procedure the hearing examiner shall issue a decision on the appeal not later than the 10th day after the date the hearing is completed.

(h)iiIn an appeal that does not involve an expedited hearing procedure, the hearing examiner shall make a reasonable effort to issue a decision on the appeal not later than the 30th day after the later of the date the hearing is completed or the briefs are filed. The hearing examiner's inability to meet the time requirements imposed by this section does not affect the hearing examiner's jurisdiction, the validity of the disciplinary action or promotional bypass, or the hearing examiner's final decision.

5178 80th Legislature — Regular Session 68th Day


(i)iiThe hearing examiner's fees and expenses shall be paid in equal amounts by the parties. The costs of a witness shall be paid by the party who calls the witness.

(j)iiA district court may hear an appeal of a hearing examiner's decision only on the grounds that the hearing examiner was without jurisdiction or exceeded the examiner's jurisdiction or that the decision was procured by fraud, collusion, or other unlawful means. An appeal must be brought in the district court having jurisdiction in the municipality in which the institution is located.

ARTICLE 16. TRAFFICKING OF PERSONS

SECTIONi16.01.iiSection 20A.01, Penal Code, is amended to read as follows:

Sec.i20A.01.iiDEFINITIONS. In this chapter:

(1)ii"Forced labor or services" means labor or services, including conduct that constitutes an offense under Section 43.02, that are performed or provided by another person and obtained through an actor's:

(A)iicausing or threatening to cause bodily injury to the person or another person or otherwise causing the person performing or providing labor or services to believe that the person or another person will suffer bodily injury;

(B)iirestraining or threatening to restrain the person or another person in a manner described by Section 20.01(1) or causing the person performing or providing labor or services to believe that the person or another person will be restrained; [or]

(C)iiknowingly destroying, concealing, removing, confiscating, or withholding from the person or another person, or threatening to destroy, conceal, remove, confiscate, or withhold from the person or another person, the person's actual or purported:

(i)iigovernment records;

(ii)iiidentifying information; or

(iii)iipersonal property;

(D)iithreatening the person with abuse of the law or the legal process in relation to the person or another person;

(E)iithreatening to report the person or another person to immigration officials or other law enforcement officials or otherwise blackmailing or extorting the person or another person;

(F)iiexerting financial control over the person or another person by placing the person or another person under the actor's control as security for a debt to the extent that:

(i)iithe value of the services provided by the person or another person as reasonably assessed is not applied toward the liquidation of the debt;

(ii)iithe duration of the services provided by the person or another person is not limited and the nature of the services provided by the person or another person is not defined; or

(iii)iithe principal amount of the debt does not reasonably reflect the value of the items or services for which the debt was incurred; or

(G)iiusing any scheme, plan, or pattern intended to cause the person to believe that the person or another person will be subjected to serious harm or restraint if the person does not perform or provide the labor or services.

Saturday, May 26, 2007 SENATE JOURNAL 5179


(2)ii"Traffic" means to transport, [another person or to] entice, recruit, harbor, provide, or otherwise obtain another person by any means [for transport by deception, coercion, or force].

SECTIONi16.02.iiSubsections (a) and (b), Section 20A.02, Penal Code, are amended to read as follows:

(a)iiA person commits an offense if the person:

(1)iiknowingly traffics another person with the intent or knowledge that the trafficked person will engage in[:

[(1)]iiforced labor or services; or

(2)iiintentionally or knowingly benefits from participating in a venture that involves an activity described by Subdivision (1), including by receiving labor or services the person knows are forced labor or services [conduct that constitutes an offense under Chapter 43].

(b)iiExcept as otherwise provided by this subsection, an offense under this section is a felony of the second degree. An offense under this section is a felony of the first degree if:

(1)iithe applicable conduct constitutes an offense under Section 43.02 [offense is committed under Subsection (a)(2)] and the person who is trafficked is younger than 18 [14] years of age at the time of the offense; or

(2)iithe commission of the offense results in the death of the person who is trafficked.

SECTIONi16.03.iiSection 125.002, Civil Practice and Remedies Code, is amended by adding Subsection (f-1) to read as follows:

(f-1)iiIf the defendant required to execute the bond is a hotel, motel, or similar establishment that rents overnight lodging to the public and the alleged common nuisance is under Section 125.0015(a)(6) or (7), the bond must also be conditioned that the defendant will, in each of the defendant's lodging units on the premises that are the subject of the suit, post in a conspicuous place near the room rate information required to be posted under Section 2155.001, Occupations Code, an operating toll-free telephone number of a nationally recognized information and referral hotline for victims of human trafficking.

SECTIONi16.04.iiSection 125.045, Civil Practice and Remedies Code, is amended by adding Subsection (a-1) to read as follows:

(a-1)iiIf the defendant required to execute the bond is a hotel, motel, or similar establishment that rents overnight lodging to the public and the alleged common nuisance is under Section 125.0015(a)(6) or (7), the bond must also be conditioned that the defendant will, in each of the defendant's lodging units on the premises that are the subject of the suit, post in a conspicuous place near the room rate information required to be posted under Section 2155.001, Occupations Code, an operating toll-free telephone number of a nationally recognized information and referral hotline for victims of human trafficking.

SECTIONi16.05.ii(a)iiNot later than September 1, 2008, the attorney general, in consultation with the Health and Human Services Commission, shall prepare and issue a report:

(1)iioutlining how existing laws and rules concerning victims and witnesses address or fail to address the needs of victims of human trafficking; and

5180 80th Legislature — Regular Session 68th Day


(2)iirecommending areas of improvement and modifications in existing laws and rules.

(b)iiNot later than September 1, 2008, the Health and Human Services Commission, in consultation with the attorney general, shall prepare and issue a report:

(1)iioutlining how existing social service programs address or fail to address the needs of victims of human trafficking;

(2)iiwith respect to those needs, outlining the interplay of existing social service programs with federally funded victim service programs; and

(3)iirecommending areas of improvement and modifications in existing social service programs.

SECTIONi16.06.iiSections 20A.01 and 20A.02, Penal Code, as amended by this article apply only to an offense committed on or after the effective date of this article. An offense committed before the effective date of this article is governed by the law in effect when the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense is committed before the effective date of this article if any element of the offense occurs before the effective date.

SECTIONi16.07.iiSubsection (f-1), Section 125.002, and Subsection (a-1), Section 125.045, Civil Practice and Remedies Code, as added by this article, apply only to a suit filed on or after the effective date of this article. A suit filed before the effective date of this article is governed by the law in effect immediately before that date, and that law is continued in effect for that purpose.

ARTICLE 17. REGULATION OF FIREWORKS IN DISASTER DECLARATION

SECTIONi17.01.iiSection 418.108, Government Code, is amended to read as follows:

Sec.i418.108.iiDECLARATION OF LOCAL DISASTER. (a)iiExcept as provided by Subsection (e), the presiding officer of the governing body of a political subdivision may declare a local state of disaster.

(b)iiA declaration of local disaster may not be continued or renewed for a period of more than seven days except with the consent of the governing body of the political subdivision or the joint board as provided by Subsection (e), as applicable.

(c)iiAn order or proclamation declaring, continuing, or terminating a local state of disaster shall be given prompt and general publicity and shall be filed promptly with the city secretary, the county clerk, or the joint board's official records, as applicable.

(d)iiA declaration of local disaster activates the recovery and rehabilitation aspects of all applicable local or interjurisdictional emergency management plans and authorizes the furnishing of aid and assistance under the declaration. The preparedness and response aspects of the plans are activated as provided in the plans and take effect immediately after the local state of disaster is declared.

(e)iiThe chief administrative officer of a joint board has exclusive authority to declare that a local state of disaster exists within the boundaries of an airport operated or controlled by the joint board, regardless of whether the airport is located in or outside the boundaries of a political subdivision.

Saturday, May 26, 2007 SENATE JOURNAL 5181


(f)iiThe county judge or the mayor of a municipality may order the evacuation of all or part of the population from a stricken or threatened area under the jurisdiction and authority of the county judge or mayor if the county judge or mayor considers the action necessary for the preservation of life or other disaster mitigation, response, or recovery.

(g)iiThe county judge or the mayor of a municipality may control ingress to and egress from a disaster area under the jurisdiction and authority of the county judge or mayor and control the movement of persons and the occupancy of premises in that area.

(h)iiFor purposes of Subsections (f) and (g):

(1)iithe jurisdiction and authority of the county judge includes the incorporated and unincorporated areas of the county; and

(2)iito the extent of a conflict between decisions of the county judge and the mayor, the decision of the county judge prevails.

(i)iiA declaration under this section may include a restriction that exceeds a restriction authorized by Section 352.051, Local Government Code. A restriction that exceeds a restriction authorized by Section 352.051, Local Government Code, is effective only:

(1)iifor 60 hours unless extended by the governor; and

(2)iiif the county judge requests the governor to grant an extension of the restriction.

ARTICLE 18. MISCELLANEOUS PROVISIONS RELATING TO HOMELAND SECURITY AND BORDER SECURITY

SECTIONi18.01.iiSubchapter A, Chapter 421, Government Code, is amended by adding Section 421.0025 to read as follows:

Sec.i421.0025.iiBORDER SECURITY COUNCIL. (a)iiThe Border Security Council consists of members appointed by the governor.

(a-1)iiAt least one-third of the members appointed under Subsection (a) must be residents of the Texas-Mexico border region, as defined by Section 2056.002.

(b)iiThe Border Security Council shall develop and recommend to the office of the governor performance standards, reporting requirements, audit methods, and other procedures to ensure that funds allocated by the office of the governor for purposes related to security at or near this state's international border are used properly and that the recipients of the funds are accountable for the proper use of the funds.

(c)iiThe Border Security Council shall advise the office of the governor regarding the allocation of funds by the office for purposes related to security at or near this state's international border. Recommendations relating to the allocation of those funds must be made by a majority of the members of the council.

(d)iiThe governor shall designate one member of the Border Security Council as the chair. The chair shall arrange meetings of the Border Security Council at times determined by the members of the council.

(e)iiThe meetings of the Border Security Council are subject to the requirements of Chapter 551 to the same extent as similar meetings of the Public Safety Commission. The plans and recommendations of the Border Security Council are subject to the requirements of Chapter 552 to the same extent as similar plans and recommendations of the Department of Public Safety of the State of Texas.

5182 80th Legislature — Regular Session 68th Day


(f)iiService on the Border Security Council by a state officer or employee or by an officer or employee of a local government is an additional duty of the member's office or employment.

SECTIONi18.02.iiThe heading to Subchapter E, Chapter 421, Government Code, is amended to read as follows:

SUBCHAPTER E. TEXAS FUSION [INFRASTRUCTURE PROTECTION COMMUNICATIONS] CENTER

SECTIONi18.03.iiSection 421.081, Government Code, is amended to read as follows:

Sec.i421.081.iiFACILITIES AND ADMINISTRATIVE SUPPORT. The Department of Public Safety of the State of Texas shall provide facilities and administrative support for the Texas Fusion [Infrastructure Protection Communications] Center.

SECTIONi18.04.iiSubchapter H, Chapter 2155, Government Code, is amended by adding Section 2155.452 to read as follows:

Sec.i2155.452.iiCERTAIN CONTRACTS FOR HOMELAND SECURITY OR LAW ENFORCEMENT TECHNOLOGY. A state governmental entity that issues a request for proposals for technological products or services for homeland security or law enforcement purposes must allow a business entity to substitute the qualifications of its executive officers or managers for the qualifications required of the business entity in the request for proposals.

SECTIONi18.05.iiSubsection (c), Article 61.02, Code of Criminal Procedure, is amended to read as follows:

(c)iiCriminal information collected under this chapter relating to a criminal street gang must:

(1)iibe relevant to the identification of an organization that is reasonably suspected of involvement in criminal activity; and

(2)iiconsist of:

(A)iia judgment under any law that includes, as a finding or as an element of a criminal offense, participation in a criminal street gang;

(B)iia self-admission by the individual of criminal street gang membership that is made during a judicial proceeding; or

(C)iiany two of the following:

(i)i[(A)]iia self-admission by the individual of criminal street gang membership that is not made during a judicial proceeding;

(ii)i[(B)]iian identification of the individual as a criminal street gang member by a reliable informant or other individual;

(iii)i[(C)]iia corroborated identification of the individual as a criminal street gang member by an informant or other individual of unknown reliability;

(iv)i[(D)]iievidence that the individual frequents a documented area of a criminal street gang and[,] associates with known criminal street gang members;

(v)iievidence that the individual[, and] uses, in more than an incidental manner, criminal street gang dress, hand signals, tattoos, or symbols, including expressions of letters, numbers, words, or marks, regardless of the format or

Saturday, May 26, 2007 SENATE JOURNAL 5183


medium in which the symbols are displayed, that are associated with a criminal street gang that operates in an area frequented by the individual and described by Subparagraph (iv); or

(vi)i[(E)]iievidence that the individual has been arrested or taken into custody with known criminal street gang members for an offense or conduct consistent with criminal street gang activity.

SECTIONi18.06.iiSubsection (c), Article 61.06, Code of Criminal Procedure, is amended to read as follows:

(c)iiIn determining whether information is required to be removed from an intelligence database under Subsection (b), the three-year period does not include any period during which the individual who is the subject of the information is:

(1)iiconfined in a correctional facility operated by or under contract with the [institutional division or the state jail division of the] Texas Department of Criminal Justice;

(2)iicommitted to a secure correctional facility operated by or under contract with the Texas Youth Commission, as defined by Section 51.02, Family Code; or

(3)iiconfined in a county jail or a facility operated by a juvenile board in lieu of being confined in a correctional facility operated by or under contract with the Texas Department of Criminal Justice or being committed to a secure correctional facility operated by or under contract with the Texas Youth Commission.

SECTIONi18.07.iiChapter 61, Code of Criminal Procedure, is amended by adding Article 61.075 to read as follows:

Art.i61.075.iiRIGHT TO REQUEST EXISTENCE OF CRIMINAL INFORMATION. (a)iiA person or the parent or guardian of a child may request a law enforcement agency to determine whether the agency has collected or is maintaining, under criteria established under Article 61.02(c), criminal information relating solely to the person or child. The law enforcement agency shall respond to the request not later than the 10th business day after the date the agency receives the request.

(b)iiBefore responding to a request under Subsection (a), a law enforcement agency may require reasonable written verification of the identity of the person making the request and the relationship between the parent or guardian and the child, if applicable, including written verification of an address, date of birth, driver's license number, state identification card number, or social security number.

ARTICLE 19. EMERGENCY MANAGEMENT TRAINING

SECTIONi19.01.iiSubchapter A, Chapter 418, Government Code, is amended by adding Section 418.005 to read as follows:

Sec.i418.005.iiEMERGENCY MANAGEMENT TRAINING. (a)iiThis section applies only to an appointed public officer:

(1)iiwhose position description, job duties, or assignment includes emergency management responsibilities; or

(2)iiwho plays a role in emergency preparedness, response, or recovery.

(b)iiEach person described by Subsection (a) shall complete a course of training provided or approved by the division of not less than three hours regarding the responsibilities of state and local governments under this chapter not later than the 180th day after the date the person:

5184 80th Legislature — Regular Session 68th Day


(1)iitakes the oath of office, if the person is required to take an oath of office to assume the person's duties as an appointed public officer; or

(2)iiotherwise assumes responsibilities as an appointed public officer, if the person is not required to take an oath of office to assume the person's duties.

(c)iiThe division shall develop and provide a training course related to the emergency management responsibilities of state-level officers and a training course related to the emergency management responsibilities of officers of political subdivisions. The division shall ensure that the training courses satisfy the requirements of Subsection (b).

(d)iiThe division may provide the training and may also approve any acceptable course of training offered by a governmental body or other entity. The division shall ensure that at least one course of training approved or provided by the division is available on videotape or a functionally similar and widely available medium at no cost.

(e)iiThe division or other entity providing the training shall provide a certificate of course completion to public officers who complete the training required by this section. A public officer who completes the training required by this section shall maintain and make available for public inspection the record of the public officer's completion of the training.

(f)iiThe failure of one or more public officers of the state or a political subdivision to complete the training required by this section does not affect the validity of an action taken by the state or the political subdivision.

(g)iiThe hours spent in a training course required by Subsection (b) may be applied toward the continuing education requirements for county commissioners under Section 81.0025, Local Government Code.

SECTIONi19.02.iiNot later than January 1, 2009, each public officer who has taken the oath of office for a state or local government office before January 1, 2008, and who is required to complete a course of training under Section 418.005, Government Code, as added by this article, must complete the training.

ARTICLE 20. PUBLIC SAFETY AGENCIES

SECTIONi20.01.iiSubsections (b), (c), and (d), Section 411.003, Government Code, are amended to read as follows:

(b)iiThe commission is composed of five [three] citizens of this state appointed by the governor with the advice and consent of the senate. Members must be selected because of their peculiar qualifications for the position and must reflect the diverse geographic regions and population groups of this state. Appointments to the commission shall be made without regard to race, color, disability, sex, religion, age, or national origin. In making an appointment the governor shall consider, among other things, the person's knowledge of laws, experience in the enforcement of law, honesty, integrity, education, training, and executive ability.

(c) Members serve staggered six-year terms with the terms [term] of either one or two members [member] expiring January 1 of each even-numbered year.

(d)iiThe governor shall designate one member of the commission as chairman of the commission to serve in that capacity at the pleasure of the governor. The commission shall meet at the times and places specified by commission rule or at the

Saturday, May 26, 2007 SENATE JOURNAL 5185


call of the chairman [or any two members]. The chairman shall oversee the preparation of an agenda for each meeting and ensure that a copy is provided to each member at least seven days before the meeting.

SECTIONi20.02.iiPromptly after this article takes effect, the governor shall appoint two additional members to the Public Safety Commission. Of those members, the governor shall designate one to serve a term expiring January 1, 2010, and one to serve a term expiring January 1, 2012.

ARTICLE 21. ENHANCED DRIVER'S LICENSE OR PERSONAL

IDENTIFICATION CERTIFICATE

SECTIONi21.01.iiSubchapter B, Chapter 521, Transportation Code, is amended by adding Section 521.032 to read as follows:

Sec.i521.032.iiENHANCED DRIVER'S LICENSE OR PERSONAL IDENTIFICATION CERTIFICATE. (a)iiThe department may issue an enhanced driver's license or personal identification certificate for the purposes of crossing the border between this state and Mexico to an applicant who provides the department with proof of United States citizenship, identity, and state residency. If the department issues an enhanced driver's license or personal identification certificate, the department shall continue to issue a standard driver's license and personal identification certificate and offer each applicant the option of receiving the standard or enhanced driver's license or personal identification certificate.

(b)iiThe department shall implement a one-to-many biometric matching system for the enhanced driver's license or personal identification certificate. An applicant for an enhanced driver's license or personal identification certificate must submit a biometric identifier as designated by the department, which, notwithstanding any other law, may be used only to verify the identity of the applicant for purposes relating to implementation of the border crossing initiative established by this section. An applicant must sign a declaration acknowledging the applicant's understanding of the one-to-many biometric match.

(c)iiThe enhanced driver's license or personal identification certificate must include reasonable security measures to protect the privacy of the license or certificate holders, including reasonable safeguards to protect against the unauthorized disclosure of information about the holders. If the enhanced driver's license or personal identification certificate includes a radio frequency identification chip or similar technology, the department shall ensure that the technology is encrypted or otherwise secure from unauthorized information access.

(d)iiThe requirements of this section are in addition to any other requirements imposed on applicants for a driver's license or personal identification certificate. The department shall adopt rules necessary to implement this section. The department shall periodically review technological innovations related to the security of driver's licenses and personal identification certificates and amend the rules as appropriate, consistent with this section, to protect the privacy of driver's license and personal identification certificate holders.

(e)iiThe department may set a fee for issuance of an enhanced driver's license or personal identification certificate in a reasonable amount necessary to implement and administer this section.

5186 80th Legislature — Regular Session 68th Day


(f)iiThe department may enter into a memorandum of understanding with any federal agency for the purposes of facilitating the crossing of the border between this state and Mexico. The department may enter into an agreement with Mexico, to the extent permitted by federal law, to implement a border crossing initiative authorized by this section. The department shall implement a statewide education campaign to educate residents of this state about the border crossing initiative. The campaign must include information on:

(1)iithe forms of travel for which the existing and enhanced driver's license and personal identification certificate can be used; and

(2)iirelevant dates for implementation of laws that affect identification requirements at the border with Mexico.

(g)iiA person may not sell or otherwise disclose biometric information accessed from an enhanced driver's license or any information from an enhanced driver's license radio frequency identification chip or similar technology to another person or an affiliate of the person. This subsection does not apply to a financial institution described by Section 521.126(e).

ARTICLE 22. EFFECTIVE DATE

SECTIONi22.01.iiExcept as otherwise provided by this Act, this Act takes effect September 1, 2007.

The Conference Committee Report on SBi11 was filed with the Secretary of the Senate.

CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 3

Senator Averitt submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi3 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

AVERITT PUENTE
ELTIFE GUILLEN
SHAPIRO MORRISON
HEGAR STRAUS
On the part of the Senate On the part of the House

The Conference Committee Report on HBi3 was filed with the Secretary of the Senate.

Saturday, May 26, 2007 SENATE JOURNAL 5187


CONFERENCE COMMITTEE REPORT ON

HOUSE BILL 12

Senator Estes submitted the following Conference Committee Report:

Austin, Texas

May 26, 2007

Honorable David Dewhurst

President of the Senate

Honorable Tom Craddick

Speaker of the House of Representatives

Sirs:

We, Your Conference Committee, appointed to adjust the differences between the Senate and the House of Representatives on HBi12 have had the same under consideration, and beg to report it back with the recommendation that it do pass.

ESTES HILDERBRAN
JACKSON FLORES
OGDEN GATTIS
D. HOWARD
O'DAY
On the part of the Senate On the part of the House

The Conference Committee Report on HBi12 was filed with the Secretary of the Senate.

RESOLUTIONS OF RECOGNITION

The following resolutions were adopted by the Senate:

Memorial Resolution

SRi1181iby Ellis,iIn memory of Lee Hage Jamail.

Congratulatory Resolutions

SRi1173iby Shapleigh,iCongratulating Robert T. Burns for receiving the May, 2007, Adelante con Ganas Award.

SRi1178iby Shapiro,iRecognizing Tom and Doris Adams of Calera, Oklahoma, for writing a poem about Texas.

SRi1179iby Lucio,iCongratulating Monica Joy Morales and Nolan Leon Counts on the occasion of their marriage.

HCRi253i(Brimer),iHonoring Thomas L. Johnson, Sr., on his induction into the Texas Transportation Institute Hall of Honor.

HCRi273i(Hinojosa),iPaying tribute to the life of Dr. Hector P. Garcia on the third Wednesday of September in 2007 and in 2008.

ADJOURNMENT

On motion of Senator Whitmire, the Senate at 7:00 p.m. adjourned until 1:30ip.m. tomorrow.

5188 80th Legislature — Regular Session 68th Day



AAAPPENDIXAA


SENT TO GOVERNOR

May 26, 2007

SBi7, SBi29, SBi155, SBi161, SBi552, SBi606, SBi737, SBi747, SBi760, SBi772, SBi778, SBi792, SBi827, SBi831, SBi992, SBi1007, SBi1032, SBi1050, SBi1053, SBi1161, SBi1169, SBi1180, SBi1237, SBi1238, SBi1255, SBi1274, SBi1288, SBi1310, SBi1404, SBi1446, SBi1456, SBi1504, SBi1510, SBi1524, SBi1526, SBi1531, SBi1723, SBi1743, SBi1829, SBi1877, SBi1954, SBi1974, SBi1986, SBi1997, SBi2000, SBi2002, SBi2014, SBi2037, SBi2054, SCRi1, SCRi9, SCRi60, SCRi84

FILED WITHOUT SIGNATURE OF GOVERNOR

May 26, 2007

SBi453

Saturday, May 26, 2007 SENATE JOURNAL 5189


HTML>